The St. Vincent Government says it plans to address a national revenue collection issue that will have a severe impact on citizens in the Grenadines.
According to Finance Minister Camilo Gonsalves, around 600 villas, guesthouses, and rooms are available for rent on the prominent Airbnb.com website, with roughly 70% of these properties located in the Grenadines.
According to Gonsalves almost none of these Airbnb properties, however, charge, pay, or collect VAT on tourist stays.
“The tax-paying hoteliers in St. Vincent and the Grenadines consider this tax evasion to be an unfair competitive advantage for these Airbnb entrepreneurs, while the government considers it illegal,” he said.
“We want to encourage the market for short- and long-term homestays to continue its growth, but within the framework of the law.”
Gonsalves stated that they will collaborate with Airbnb and local hosts to eliminate loopholes and raise awareness about the existing law.
