CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Grenada Adapts VAT Regime

Grenada Adapts VAT Regime

by Phillip Morton, Investors

24 May 2013

The Government of Grenada has announced, in its Budget for 2013-14, comprehensive changes to the island's VAT regime, and proposals to introduce a Citizenship by Investment Program.

The Government has committed to a review of the VAT regime following lobbying from local businesses. The VAT waiver on imports, local businesses argue, places local purchases at a competitive disadvantage to imports. To address these concerns, the Government has committed to extend VAT concessions to locally-produced products.

Other legislative amendments will allow voluntary registration for VAT purposes by small businesses from January 2014.

In addition, the Government intends to cut the VAT rate on construction sector inputs, from May 1, 2013, until December 31, 2014, on sand; cement; roofing materials; steel; lumber; and construction blocks. Furthermore, construction services rendered for projects valued at less than XCD400,000 (USD148,000) until December 31, 2014, will be exempt from VAT.

The Government has also replaced the Manufacturers Rebate with the Manufacturers Competitiveness Program, providing for a tax rebate of 5 percent of VAT-exclusive sales for qualified manufacturers, effective from May 1, 2013.

Other proposals raised in the Budget include the establishment of a Citizenship by Investment Program, which the Government has said will mirror similar regimes in place in other Caribbean territories. The program will be developed for launch in June 2013, the Government said.

Lastly, in the second half of 2013, Grenada will launch new e-taxation services, allowing taxpayers to register for tax purposes and obtain a Tax Identification Number online, and file their monthly and annual returns electronically.

TAGS: Citizenship | tax | small business | business | value added tax (VAT) | international financial centres (IFC) | Grenada | offshore | legislation | construction | regulation | services

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »