Reporting for GCT on Government Purchases Due
Tax Administration Jamaica (TAJ) is reminding GCT Registered Taxpayers who provide goods and services to government entities that the new policy of GCT being charged on government purchases is to be reflected on their GCT return, starting with their June GCT return, due by the end of July. A new GCT return has been designed to accommodate this, and should be used by all GCT registered taxpayers. In making such returns the Withholding Tax Certificates (WTC) issued to the supplier by a government Tax Withholding Entity (TWE) may be claimed as a credit against Output Tax.
The new policy, which came into effect on June 1, 2014, now requires government entities to pay GCT on purchases. The new law stipulates that ministries, departments, agencies and some public bodies be registered as Tax Withholding Entities (TWEs) and requires them to withhold the GCT from their suppliers, provide suppliers with a Withholding Tax Certificate and make the payments to Tax Administration Jamaica (TAJ).
TAJ's system has been configured to allow the TWEs to now begin uploading the withholding tax certificates issued during the month of June. The government entities are expected to complete this exercise by July 21, following which suppliers will be able to file their GCT returns electronically showing WTCs being claimed as credit. It should be noted that suppliers must file their GCT returns online in order to claim the credit reflected on withholding tax certificates.