St Vincent And The Grenadines Introduces VAT
The government of St Vincent and the Grenadines has said that the new value-added
tax system, which went into effect on May 1, will broaden the tax base while
creating more neutrality, equity and fairness in the current tax system. The introduction of VAT in the jurisdiction means the abolition and replacement
of five different consumption taxes, which were charged at rates of up
to 55%, with one tax at a standard rate of 15%. The government said it has been
able to introduce VAT at a lower rate because the tax base has been widened
to include most goods and services, some of which were beyond the scope of the
previous tax system. The government said that exported goods will become more competitive as exporters
receive credit for their inputs and VAT on exports will be zero-rated. The government said: "The VAT Implementation Unit seeks to broaden the
tax base, providing neutrality, equity and fairness in the current tax system
for the development of St. Vincent and the Grenadines." A number of items are zero-rated under the VAT system, including food, petrol
and diesel, exercise books and newspapers, computer hardware and accessories,
and certain medical supplies. A comprehensive report in our Intelligence Report series giving background tax and residence information on many of the key offshore jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report4.asp
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