St Kitts Releases VAT White Paper

by Amanda Banks, Tax-News.com, London

23 April 2010

The St Kitts and Nevis government has released a white paper detailing the introduction of a value-added tax (VAT) regime in the Federation.

According to the government, the VAT will consolidate 12 existing taxes – the Consumption Tax, the Hotel and Restaurant Tax, the Cable TV Tax, the Vehicle Rental Levy, the Insurance Premium Tax, the Export Duty, the Public Entertainment Tax, the Lotteries Tax, the Gaming Machine Tax, the Traders Tax, the Telecommunications Levy (IDD Calls) and the Parcel Tax.

The paper also outlines a number of goods that will be zero-rated under the new regime, including milk, infant formula, diapers, rice, sugar, and certain medicines for chronic diseases such as hypertension, diabetes, and cardiovascular disease. In addition the government has disclosed that a number of transactions, such as the sale of real property attributable to a dwelling subject to stamp duty, may be exempt from VAT. All goods for export are to be VAT exempt.

The White Paper, available on the Office of the Prime Minister’s website, outlines all aspects of the regime ahead of the release of the governing legislation. VAT is scheduled to be introduced in November 2010, providing the regime gains parliamentary approval.

Recommended