Here’s a table detailing the VAT (Value Added Tax) rates in Barbados:
| Category | VAT Rate | Notes |
|---|---|---|
| Standard Rate | 17.5% | Applies to most goods and services. |
| Reduced Rate | 7.5% | Applies to accommodation in hotels, guest houses, and similar facilities. |
| Zero-rated Supplies | 0% | Includes basic food items, prescription drugs, and exports. |
| Exempt Supplies | Exempt | Includes financial services, education, health services, and rent. |
Key Points to Note:
- Standard Rate (17.5%): This is the default VAT rate that applies to the majority of goods and services in Barbados.
- Reduced Rate (7.5%): Primarily applies to the tourism sector, specifically for accommodations such as hotels and guest houses.
- Zero-rated Supplies (0%): Essential items like basic foodstuffs, prescription medications, and exported goods do not attract VAT.
- Exempt Supplies: Certain services such as financial services, educational services, and healthcare are exempt from VAT.
These rates are set by the Barbados Revenue Authority and are subject to change.