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VAT Standard rate
VAT standard rate in Barbados in 2024 is 17.5%. It applies to supplies of goods and import. Export in Barbados is zero-rated, as well as some basic food items (salt, rice, pasta, some fruits, and other).VAT standard rate
On December 1, 2019, Barbados introduced a new tax reform that obliges non-resident digital service providers to pay 17.5% VAT.Vat zero rate
Applies to the supply of educational and scientific literature on electronic media.
VAT Standard rate
17,5%
VAT Reduced rate
-
Thresholds
EUR 94,000
VAT registration threshold
The VAT threshold in Barbados is BBD 200,000 (approx. EUR 94,000). Businesses have to register for VAT purposes in Barbados if their annual revenue exceeds this amount or is expected to be so. Also, VAT registration in Barbados is required if the monthly revenue is greater than BBD 16,666.67 (approx. EUR 8,000). Voluntary registration is allowed.Deductible VAT
Businesses can reclaim input tax by deducting it from output tax. Expenses that are not relevant to the business cannot be claimed for deduction. The input tax incurred by businesses not registered for VAT in Barbados is not subject to refund.Registration procedure
Within 21 days after the threshold was exceeded businesses have to apply for VAT registration in Barbados online with the Tax Administration Management Information System (TAMIS). The following documents are needed:- Articles of Incorporation (Form 1)
- Notice of Address/Change of Address (Form 4)
- Notice of Directors/Change of Directors (Form 9)
- Request for Name Search/Reservation (Form 33)
- Certificate of Incorporation (Form 3)
VAT returns filing and payment date
Businesses must submit returns and pay VAT in Barbados on a bi-monthly basis. The deadline is the 21st of the month following the reporting period.Penalties in Barbados
Penalty for late filing of VAT returns – BBD 100 (approx. EUR 47). Penalty for late payment – 10% of the amount due. Penalty for fraud – criminal penalties may apply.Threshold
There is no threshold after which it is necessary to register as a VAT payer. Registration must be completed before the first sale of services to Barbados. Currently, the Barbados tax authorities are preparing further step-by-step instructions on the functioning of VAT for non-resident companies providing digital services.Registration procedure
The application for registration is submitted online to the Tax Administration Management Information System (TAMIS). It is then reviewed within 5 days, and with all the necessary information, the taxpayer number is approved.Tax representative
Appointment of a tax representative is not mandatory, but it is possible for further resolution of cases at the request of the company.Keeping records
In Barbados, all tax records, including tax invoices, ledgers, proforma accounts, invoices, and other records related to the payment of VAT, must be kept for 7 years after the end of the reporting period. All these records may also be stored electronically but must be easily accessible to supervisory authorities.Filling VAT return and payment date
Reporting periods in Barbados for VAT are two months. Therefore, the declarations must be submitted using the Barbados Revenue Authority’s (TAMIS) system and paid by the 21st day of the month following the reporting period in an online format.
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