Share this post on

VAT rates in Barbados

Quick overview

Standard Rate Reduced Rate Other Rates
17.5% 10% 22%, zero-rated (0%) and exempt

The local name for VAT in Barbados is Value-added tax (VAT).

There are basically 3 VAT rates in Barbados:

  • Standard VAT rate is 17.5%
  • Reduced VAT rate is 10%
  • A higher rate of 22%

Recent developments

For more information about (recent) rate change developments in Barbados, please click HERE.

Standard rate: 17.5%

This rate applies for all transactions that take place in Barbados, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate: 10%

  • Accomodation services
  • Tourism services

Higher rate: 22%

  • Mobile phone services

Zero rate (0%)

  • Financial Services
  • Water
  • Exported goods and services
  • Selected food items
  • Prescribed drugs
  • Veterinary services
  • International cruises
  • Imported inputs for manufacturing

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on November 1, 2021.


VAT news