What is VAT?

A tax imposed on the value of imports, the value added or mark up on goods and services supplied by one business to another and business to the final consumers.

Date of Implementation (VAT)

Implementation date May 1, 2007

What are the Vat Rates?

  • Standard rate – 16%
  • Zero-rated Supplies – 0%
  • Accommodation – 11%

What is the VAT registration threshold?

This is the minimum sales figure, which determines whether or not a business registered and required to charge and collect VAT, this is $300,000 annual sales.

What are the type of VAT Supplies?

  • Standard rated Supplies
  • Zero rated Supplies
  • Exempt Supplies

KEY VAT TERMS

INPUT TAX

  • Is the VAT a registered person/businesses pays whenever goods are imported, bought or services utilized to which they can reclaim.

OUTPUT TAX

  • Is the VAT a registered person/business charges customers on goods and services supplied.

STANDARD RATE

  • This is the rate applied to taxable sales or supplies except those that are zero-rated.
  • The rate is 16 percent.

ZERO-RATED SUPPLIES

  • No VAT is charged (i.e. 0 percent). 
  • Registered businesses can claim for VAT Paid on inputs.

EXEMPT SUPPLIES:

  • No VAT is charged.
  • Registered businesses cannot claim VAT paid   on inputs

What is the difference between a VAT invoice and VAT sales receipt?

The difference between a VAT INVOICE and a VAT SALES RECEIPT:

VAT Invoice 

  • A registered business issues a VAT INVOICE to another registered business when a sale occurs.

VAT Sales Receipt

  • A registered business issues a VAT RECEIPT to the final consumer when a sale occurs.

PAYMENT DUE

  • The difference between the output and input VAT payable at the end of the tax period (a calendar month.

What is Vat Reverse Charge?

  • The VAT reverse charge is how you must account for VAT on services that you purchase from businesses who are based outside St. Vincent and the Grenadines.
  • If you are not registered for Vat, the reverse charge will not apply to you. 
  • The VAT reverse charge is the amount of VAT you would have paid on that service if you had bought that service in SVG. 

Who pays VAT reverse charge?

  • Recipient of the service performed by the non- resident

Due Date

  • Remitted on the 15th of each month

What are the penalties for late payment and filing of VAT return?

  • Late payment 20%
  • Late filing – the greater of 5% or $500 of the tax due
  • Interest – 1.5%

Consumers should not pay VAT on any goods and services that is:

  • Zero-rated
  • Exempt

Consumers should ensure that:

  • the VAT registration certificate is clearly displayed at business;
  • the prices displayed is what they pay;
  • they collect sales receipt from businesses;
  •  sales receipt has total VAT paid.