- Building materials stay VAT-free to 2030. Parliament (Senate approval on 15 July 2026) extended the VAT exemption on key construction inputs — cement, lumber, steel and aluminium — until 30 November 2030 to keep building costs down for homeowners and the sector. [stluciatimes.com]
- Temporary VAT arrears relief. A temporary waiver of penalties and interest applies to outstanding VAT liabilities for periods ending on or before 31 December 2025, available until 31 December 2027 to encourage settlement of arrears. [stluciatimes.com]
- Accompanying income-tax measure. Separately (non-VAT), first-time landowners can claim a 50% deduction on loan interest for residential land up to 22,000 sq ft, where the deed is registered on or after 2 May 2026. [stluciatimes.com]
Article
St. Lucia’s Parliament has approved a package of tax measures with two significant VAT components, following debate in the House of Assembly and Senate approval on 15 July 2026. First, the government extended the VAT exemption on key construction materials until 30 November 2030. The relief keeps products such as cement, lumber, steel and aluminium free of VAT, continuing to lower input costs for homeowners and the construction industry — a measure originally introduced in August 2023 and repeatedly renewed since. [stluciatimes.com], [kpmg.com]
Second, Parliament approved temporary relief from VAT penalties and interest for taxpayers carrying outstanding VAT liabilities relating to periods ending on or before 31 December 2025. The waiver remains available until 31 December 2027, giving businesses and individuals a window to clear arrears without accruing further penalties or monthly interest — effectively a targeted amnesty on the punitive charges rather than the principal debt. [stluciatimes.com]
Alongside these VAT measures, Parliament amended the Income Tax Act to grant first-time landowners a 50% deduction on interest paid on loans used to buy residential land up to 22,000 square feet, provided the deed is registered on or after 2 May 2026. While that particular relief is an income-tax measure rather than a VAT/customs one, it forms part of the same housing-affordability push. [stluciatimes.com]
Links: Parliament approves tax measures – St. Lucia Times · Extended VAT exemption on construction materials – Govt of Saint Lucia · Prior VAT waiver background – KPMG TaxNewsFlash
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