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VAT Standard rate in Barbados
The standard VAT rate is 17.5%, applied to the majority of goods and services in BarbadosVAT Increased Rate
A 22% rate applies specifically to mobile phone services (voice, data, SMS)VAT Zero Rate in Barbados
Certain goods and services are subject to 0% VAT, meaning no VAT is charged and input VAT can still be reclaimed. These include:
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Exports of goods and services
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Basic food items (e.g., salt, rice, pasta, select fruits)
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Prescription drugs, water, financial services, veterinary services, international freight/cruises
Reduced VAT rate in Barbados
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A 7.5% rate is applied to accommodation and tourism services, such as hotels and guest houses
VAT standard rate
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17.5% VAT applies to all digital services provided to Barbadian consumers (both B2C and B2B) by non-resident and local suppliers
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The same rate also applies to imported digital services
Vat zero rate
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Barbados does not zero-rate digital services consumed domestically.
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However, other sectors (e.g., exports of goods, basic foods, prescription drugs) are zero-rated
VAT Increased Rate
Not applicable to digital services — the 22% VAT rate applies only to telecommunications like mobile voice, SMS, and dataVAT Reduced Rate
- No reduced VAT rates apply specifically to digital services—they are always taxed at 17.5%.
VAT Standard rate
17,5%
VAT Reduced rate
10%,7,5%,0%
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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