St Lucia To Install VAT System In 2010

by Amanda Banks, Tax-News.com, London

29 September 2009

The St Lucia government has confirmed that preparations for the implementation of a Value-Added Tax (VAT) system are running smoothly, and has set an April 1, 2010, deadline for its introduction.

According to the government, as part of its preparations, its Value Added Tax Implementation Project Team is continuing to educate citizens on the various aspects of a VAT system and its ramifications for businesses on the island.

Head of the team, Kurt Reynolds said that several misconceptions about VAT have now been addressed and that people now have a better appreciation of the system. He commented following meetings with several organizations including the Chamber of Commerce and the Petroleum Dealers Association that:

“People are generally concerned about the business aspect of VAT when it comes, including VAT returns and other issues relating to the invoice credit mechanism. Of course, ordinary citizens are concerned about whether they will be calculating for themselves the Value Added Tax when they get to the cashier. We have done much to alleviate those fears by explaining to people that the shelf price of items will include the Value Added Tax,” Reynolds said.

According to the government, the Value-Added Tax will not increase the burden on the island but instead amalgamate various other indirect taxes currently being administered by various government departments including the Inland Revenue and Customs and Excise Departments. As a result of the introduction of the system St Lucia’s consumption tax will be rescinded.

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