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Trinidad and Tobago Considers VAT Exemption for Energy Sector to Improve VAT Returns

  • Finance Minister Colm Imbert is considering waiving Value Added Tax (VAT) for the energy industry in Trinidad and Tobago.
  • This is to help the government pay VAT returns to small and medium enterprises (SMEs).
  • The majority of VAT returns owed are to the energy sector, which is zero-rated.
  • Imbert believes exempting the sector from paying VAT could eliminate the problem.
  • He is also considering transitioning from VAT to a sales tax, but acknowledges the challenges involved.
  • Compliance with a sales tax may present similar or more problems than the current VAT regime.
  • The collection method for VAT is different from a sales tax, with VAT being added at each stage of the process.
  • Imbert is carefully examining the potential revenue and implications of implementing a sales tax.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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