5 Major Developments in Barbados

5 Major Developments in Barbados

• VAT holiday electric and plug-in hybrids exended to March 31, 2026

• Effective April 1, 2023 reinstate VAT payable on gasoline, which is capped at 47 cents per litre for six months

• Effective April 1, 2023 reinstate VAT payable on diesel which is capped at 37 cents per litre for six months – VATupdate

• Government’s Plan – Key Fiscal Measures
• VAT exemption for film-related suppliers such as studios and film equipment rentals that are registered as exclusive film providers – VATupdate

Customs

• KPMG Week in Tax: 13 – 17 March 2023

• Government’s Plan – Key Fiscal Measures

Deduction (Input Tax Credit) 

• KPMG Week in Tax: 13 – 17 March 2023

E-Invoicing

• KPMG Week in Tax: 13 – 17 March 2023

Excise

• Government’s Plan – Key Fiscal Measures

Exemption

• Barbados Announces VAT Holiday for 21 December 2022

• Extension of excise tax and VAT holiday on purchase of electric vehicles by ordinary persons or companies for another two years, to 31 March 2026

• VAT exemption for film-related suppliers such as studios and film equipment rentals that are registered as exclusive film providers – VATupdate

• 2023 Budget: VAT Exemption on ‘Green’ Vehicles

• Tax measures in 2023 budget

• VAT holiday electric and plug-in hybrids exended to March 31, 2026

Rate

• Barbados Announces VAT Holiday for 21 December 2022

• Barbados Lower House Considers Bill to Temporarily Reduce VAT on Electricity Supplied to Domestic Premises

• Consumers will get another eight months of 7.5% VAT on electricity

• One year of light bills savings: VAT reduction stays for 8 months more

• Bajan drivers left exposed: Fuel cap, VAT cap on gas and diesel gone

• Removal of value added tax (VAT) cap on gasoline and diesel (currently 47 cents* and 37 cents per litre, respectively)

• Extension of excise tax and VAT holiday on purchase of electric vehicles by ordinary persons or companies for another two years, to 31 March 2026
• Tax measures in 2023 budget
• VAT holiday electric and plug-in hybrids exended to March 31, 2026

• Revenue Authority Extends Reduced VAT on Residential Electricity Supply

Reporting / Compliance

• VAT-free shopping on Wednesday December 21, 2022 in Barbados

• KPMG Week in Tax: 13 – 17 March 2023
• Government’s Plan – Key Fiscal Measures

Taxable Amount

• Bajan drivers left exposed: Fuel cap, VAT cap on gas and diesel gone

• Effective April 1, 2023 reinstate VAT payable on gasoline, which is capped at 47 cents per litre for six months

• Effective April 1, 2023 reinstate VAT payable on diesel which is capped at 37 cents per litre for six months – VATupdate