The Barbados Government has confirmed that Wednesday, December 21, 2022, will be a VAT holiday in Barbados.
“As was the case last year, the goal is to provide a welcomed ease for consumers, which is obviously on top of what has already happened for the year, and we believe that the timing is right in terms of being able to do this significantly.”
This was revealed by Minister of Finance Ryan Straughn during a press conference on Monday at Government Headquarters, Bay Street, St Michael.
Straughn predicted that consumers would benefit from the 17.5% price reduction during the holiday season, allowing them to ‘Stretch their budgets’.
He stated that eligible goods had to be available for immediate sale or delivered to the customer on the same day, and orders for goods that were not in stock did not qualify.
Hire purchase sales qualified. He did, however, remind the public of the items that are not eligible for the VAT discount.
“Credit purchases, goods on consignment, or purchases from wholesale distribution centers are not eligible. Automobiles, gasoline, LPG, diesel, firearms, ammunition, cigarettes, and alcoholic beverages are not permitted. “The supply of lodging is not eligible,” he revealed.
Businesses are expected to file their VAT returns as usual but record zero-rated supplies on Wednesday due to the VAT holiday.
