St Kitts And Nevis Preparing For VAT

by Phillip Morton, Investors Offshore.com

25 June 2010

The St Kitts and Nevis government has announced that it is considering studies submitted by the Caribbean Regional Technical Assistance Centre (CARTAC) on the future implementation of a value-added tax (VAT) in the jurisdiction.

”In looking at the proposals for a possible VAT rate, cabinet reviewed important studies and analyses on the VAT that have been undertaken by CARTAC. It has been suggested that a VAT rate under 20% be implemented to replace about a dozen existing taxes. Specific details on the VAT rate will be finalized shortly and communicated to the public,” the government said in a statement on June 21.

The government reported that the Attorney General and the Minister of Justice and Legal Affairs, Patrice Nisbett had confirmed that the appropriate VAT legislation could be put before the cabinet and Parliament in the next few weeks.

At a recent meeting of the cabinet, Prime Minister and Minister for Finance, Denzil Douglas emphasized that VAT would be implemented with exemptions for a range of basic goods and services including interest and loan payments, some medicines for chronic diseases, bus fees, residential rent, local farmers’ produce, fuels such as gasoline, diesel, cooking gas and kerosene, articles specific to disabled persons, printed reading material, and some imported food.

According to the government, businesses with annual gross sales of less than XCD150,000 (USD55,800) will not have to collect VAT.

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