Title page
TECHNICAL ASSISTANCE REPORT
SURINAME
Assessing the Launch and Administration of VAT in Suriname
APRIL 2024
Prepared By
Norris Miller, Stephen Mendes, Frode Lindseth, Rick Fisher and Grenville John
Authoring Departments
Fiscal Affairs Department
Copyright Page
©2024 International Monetary Fund
The contents of this document constitute technical advice provided by the staff of the International Monetary Fund to the authorities of the Republic of Suriname (the “CD recipient”) in response to their request for technical assistance. Unless the CD recipient specifically objects to such disclosure, this document (in whole or in part) or summaries thereof may be disclosed by the IMF to the IMF Executive Director for the Republic of Suriname, to other IMF Executive Directors and members of their staff, as well as to other agencies or instrumentalities of the CD recipient, and upon their request, to World Bank staff, and other technical assistance providers and donors with legitimate interest members of the Steering Committee of the Caribbean Regional Assistance Centre (CARTAC) (see Staff Operational Guidance on the Dissemination of Capacity Development Information). Publication or Disclosure of this report (in whole or in part) to parties outside the IMF other than agencies or instrumentalities of the CD recipient, World Bank staff, other technical assistance providers and donors with legitimate interest members of the Steering Committee of CARTAC shall require the explicit consent of the CD recipient and the IMF’s FAD department.
The analysis and policy considerations expressed in this publication are those of the IMF/FAD
International Monetary Fund, IMF Publications
P.O. Box 92780, Washington, DC 20090, U.S.A.
T. +(1) 202.623.7430 • F. +(1) 202.623.7201
Contents
Abbreviations and Acronyms
Preface
Executive Summary
Recommendations
I. Introduction
A. Background
B. Fiscal Review
II. Assessing the Launch of the Value Added
A. Overall Status
B. Views of the Private Sector
III. Tax Administration of VAT
A. Legislative Framework and Challenges
B. Organizational Arrangements and Staffing Issues
C. Taxpayer Registration and the Use of a Single TIN
D. Taxpayer Service and Public Awareness Program
E. Filing and Assessment
F. Payment and Arrears Management
G. Audit
H. VAT Refund
I. Information Technology
IV. Analyzing VAT Operational Performance in Accurate Reporting
V. Customs Administration of the VAT
A. Overview of Customs Preparedness of VAT
B. Measures Essential for the Effective Management of VAT
C. Overall Strengthening of Customs Operations
VI. Reform Program and Donor Support
A. Donor Support
B. Technical Assistance
Boxes
1. Views of the Private Sector Representatives
Figures
1. VAT Revenue Performance
2. VAT Revenue Collection
3. Status of VAT Refund Claims
4. Status of Accumulated VAT Refund
5. VAT Declaration Filed by Net Liability
6. Categories of Supplies
7. Distribution of Total Output VAT and Input VAT
8. No. of Taxpayers Filing Monthly Returns and Net VAT Reported
9. VAT Collection against Sales Tax
Tables
1. Key Mission Recommendations
2. DoTC 2023 Revenue Performance
3. Key Recommendations for launching the VAT
4. Departments Administering VAT
5. VAT Payable and Paid (SRD million)
6. Status of the Delivery of Tax Administration System
7. Initial VAT Information Submitted against Amount Revised
8. Sectors Contribution and Performance
9. Key Performance Ratios for Selected Countries
10. Customs Motor Vehicle Valuation (USD) Compliance Efforts
11. Staffing in Customs
Annexes
I. Status of FAD 2022 Mission Recommendations
II. Modules and Functionalities of the New Tax Systems
III. Sample of the RBM Framework
Abbreviations and Acronyms
| ASYCUDA | Automated System for Customs Data |
| CARTAC | Caribbean Regional Technical Assistance Center |
| CD | Capacity Development |
| CED | Custom and Excise Department |
| CIT | Corporate Income Tax |
| DoTC | Directorate of Taxes and Customs |
| EU EPA | European Union Economic Partnership Agreement |
| FAD | Fiscal Affairs Department |
| FIN | Fiscal Identification Number |
| GPFP | Global Public Funding Partnership |
| GDP | Gross Domestic Product |
| GTA | General Tax Act |
| HQ | Headquarters |
| HS | Harmonized System |
| IMF | International Monetary Fund |
| IT | Information Technology |
| LTU | Large Taxpayer Unit |
| MSC | Multi Collection System |
| MTS | Multi Tax System |
| NT | Net Tax |
| OTA | Office of Tax Administration |
| PCA | Post Clearance Audit |
| PIT | Personal Income Tax |
| RBM | Results-Based Management |
| RMU | Risk Management Unit |
| SARA | Semi-Autonomous Revenue Authority |
| SOP | Standard Operating Procedures |
| SRD | Surinamese Dollar |
| TADAT | Tax Administration Diagnostic Tool |
| TAPA | Tax Administration Procedure Act |
| TFA | Trade Facilitation Agreement |
| TIN | Taxpayer Identification Number |
| TIT | Total Input Tax (VAT) |
| TOT | Total Output Tax (VAT) |
| TRACKER | Tax Revenue and Customs Knowledge Exchange and Research |
| TS | Total Supplies |
| UAT | User Acceptance Testing |
| UNCTAD | United Nations Conference on Trade and Development |
| VAT | Value Added Tax |
| VIT | VAT Implementation Team |
| WCO | World Customs Organization |
| WTO TFA | World Trade organization Trade Facilitation Agreement |
| ZRS | Zero-rated Supplies |
Preface
At the request of the authorities of Suriname, a Capacity Development (CD) mission from the Fiscal Affairs Department (FAD) visited Paramaribo, Suriname from January 15- 26, 2024. The main tasks of the mission were to assess the effectiveness of the launch and administration of the Value Added Tax (VAT) and to provide advice on improving the efficiency and effectiveness of the administration of VAT within Suriname.
The mission team comprised of Mr. Norris Miller (FAD); Messrs. Stephen Mendes and Frode Lindseth (Caribbean Regional Technical Assistance Centre (CARTAC), resident customs and tax advisors, respectively, and Messrs. Rick Fisher and Grenville John (FAD tax and customs experts, respectively).
The team met with the Honorable Kermechend Stanley Raghoebarsingh, Minister of Finance and Planning; Ms. Marita Wijnerman, Director of the Directorate of Taxes and Customs (DoTC); Mr. Maikel Bruijne, Inspector of Sales Tax, responsible for VAT; Ms. Charda Girwar, Inspector of Customs and Excise; Mses. Danielle Wilfried and Sharida De Randamie, Collectors for Direct Taxes and Customs and Excise respectively; Mr. Radjes Sardjoe, Fiscal Affairs, and senior management of the respective tax and customs departments. Meetings were also held with the Information Technology (IT) provider and the authorities’ IT consultant.
The mission benefitted from the views of key private sector associations representing manufacturers, chamber of commerce, audit firms, shipping association, customs brokers, and agents.
The mission expresses its appreciation to the DoTC’s senior management team and staff for their active engagement and participation during the mission. The team also extends its thanks to Maikel Bruijne, for providing valuable support, including timely submission of data and for all logistical arrangements and support during the assessment.
This report comprises an Executive Summary and six Chapters: (i) Introduction; (ii) Assessing the Launch of the VAT; (iii) Tax Administration of VAT; (iv) Analyzing VAT Operational Performance in Accurate Reporting; (v) Customs Administration of the VAT; and (vi) Reform Program and Donor Support.
In this report, we refer to: (i) the Office of the Tax Administration (OTA), which comprises the domestic tax operations—Inspectorate of Direct Tax, Inspectorate of Indirect Tax (Sales Tax), and the Collectorate of Direct and Indirect Taxes; (ii) Customs and Excise Division (CED), comprising—Inspectorate of Import Duties and Excise and Collectorate of Duties and Excise; and (iii) the Directorate of Taxes and Customs (DoTC), which is responsible for the overall administration of taxes and includes the Office of the Director, OTA, and CED.
