Basseterre, St. Kitts, November 14, 2018 (SKNIS): The people of St. Kitts and Nevis will have two discounted Value Added Tax (VAT) Rate Days next month, Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, announced today, November 14 at his monthly press conference.
“My Cabinet has approved the recommendation from the Chamber of Industry and Commerce (CIC) and the Ministry of Finance that Friday, December 14 and Thursday, December 20, 2018, be declared Discounted VAT Rate Days,” said the finance minister.
Prime Minister Harris noted that the underlying objective of the Reduced VAT Rate Days is to foster a higher level of consumer spending within the federation, continuing the upward trend that has been experienced under the Team Unity Administration.
“Our prosperity agenda is impacting our people. More are receiving their fair share. More are at work. More are contributing to Social Security. The highest earnings were received under Team Unity. More businesses are being registered. Indeed, annual business licences peaked at 490,” said the minister of finance, noting that this figure represents the highest level ever.
The annual Discounted VAT Rate Days will allow all VAT registered businesses to charge VAT at the rate of 5 percent on the sale of goods only. All tangible items that are presently subject to 17 percent VAT will qualify for the discount VAT Rate. For vehicle purchases, VAT will be exempt on the first EC$50,000, with VAT at the standard 17 percent charged thereafter.
Non-tangible items, such as the supply of professional services, will continue to be subject to the 17 percent VAT rate. Services such as legal fees, restaurant supplies, rent, tickets for the game of chance (lottery/ raffles), top-ups and phone cards will not have VAT reduced rate.