Dominica VAT Calculator

Value Added Tax (VAT) in Dominica is a consumption tax placed on the sale of goods and services. It's collected at each stage of the supply chain — from production to the point of sale — and ultimately paid by the final consumer. Businesses registered for VAT collect this tax on behalf of the government and can also recover the VAT they pay on their business purchases.

👉 Learn more on the official Inland Revenue website

Dominica introduced its VAT system on March 1, 2006. The main reason was to modernize the country's tax structure by replacing multiple older taxes that were inefficient and harder to manage. These included:

• Consumption Tax
• Sales Tax
• Hotel Occupancy Tax
• Entertainment Tax

The new VAT system aimed to simplify tax collection, improve compliance, and broaden the tax base to include more sectors of the economy. Since then, it has become one of the main sources of government revenue.

• Standard Rate: 15%
  Applies to most goods and services, including retail items, services, and imports.
• Reduced Rate: 10%
  Applies to tourism-related services like hotel accommodations and dive packages.
• Zero-Rated (0%)
  Applies to certain essential goods and services such as exports and international transport. VAT is not charged, but businesses can still claim input tax credits.

Who Pays VAT?
Any consumer buying taxable goods or services in Dominica pays VAT as part of the final price.

Business Responsibilities:

• Collect VAT from customers
• Submit VAT returns regularly
• Keep proper records
• Claim input tax credits where applicable

1. Find the VAT Amount:
   Multiply the product or service price by the VAT rate.
   Example: EC$100 × 15% = EC$15 VAT
2. Total Price with VAT:
   Add the VAT to the original price.
   Example: EC$100 + EC$15 = EC$115 total

• Corporate Tax: 25% on company profits
• Personal Income Tax: Ranges from 15% to 35%
• Withholding Tax: 15% on dividends, interest, and royalties to non-residents

Dominica’s VAT is a crucial part of its modern tax system. Introduced in 2006 to replace outdated taxes, it ensures a steady revenue stream for the government while simplifying compliance for businesses. With rates of 15%, 10%, and 0%, the VAT system supports both essential services and economic sectors like tourism.