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. VAT Introduced In Saint Lucia

VAT Introduced In Saint Lucia

by Amanda Banks,, London

02 October 2012

A last minute concession was secured by St. Lucian hoteliers prior to the introduction of a value-added tax (VAT) regime in the island on October 1, 2012.

Hotels, representing a significant proportion of the businesses that will be required to levy VAT, had threatened to shut up shop just prior to its introduction if an exemption from the levy was not secured for 'service charges' received by hotel industry workers, which serve to top up their wages. In meetings just days before the VAT's introduction, the government gave in to pressure to introduce an exemption.

With the introduction of VAT on October 1 - one month later than originally scheduled - St Lucia becomes the final independent territory in the Caribbean Community to introduce such a levy. With a headline rate of 15%, St Lucia's VAT regime will be comparatively less punitive than in other CARICOM territories. Presently only Haiti and Belize have lower headline rates at 10% and 12.5%, respectively, although the Turks and Caicos Islands is due to introduce an 11% VAT from April 2013. The government of St. Lucia earlier agreed to a concessionary rate of 8% for the hotel industry.

The VAT registration threshold has been set at XCD180,000 (USD66,000). The levy replaces the island's consumption tax, environmental protection levy, motor vehicle rental fee, mobile cellular telephone tax, and hotel accommodation tax.

TAGS: tax | business | value added tax (VAT) | Saint Lucia | law | travel and tourism

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 »