St. Kitts and Nevis will have two Discounted Value Added Tax (VAT) Rate Days this year — Saturday, Dec. 14 and 21, Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris announced Monday at his monthly press conference.
“These dates have been agreed with the Chamber of Industry and Commerce,” said the prime minister.
The two 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 discounted VAT Rate.
For vehicle purchases, VAT will be exempt on the first EC$50,000, with VAT at the standard 17 percent charged thereafter.
“This is a major boost to spur vehicle ownership in the country and allow our people the convenience of a better quality of life. We caution those who are driving to drive carefully and within the designated speed limits. With our excellent roads, the temptation may be to speed, and we warn drivers and motorists to resist that temptation,” said Prime Minister Harris.
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 the VAT reduced rate.
In addition to the Discounted Vat Rate Days, the following concessions will be granted during the month of December: non-commercial importation of foodstuff up to 400 pounds in weight will be allowed free of duty and taxes; individuals will be allowed to import non-commercial goods valued up to EC$540 (US$200) free of duty and taxes, and individuals travelling in December will be eligible to receive duty and tax concessions on goods brought in up to a value EC$540 (US$200).
“No other government in the region has had the financial strength to do what we in St. Kitts and Nevis have done in 2015, 2016, 2017, 2018 and will do again in 2019 God’s willing, that is to reduce the applicable VAT rate and pay a double salary four (4) times in a row. Even when we would have done so, our country remains in surplus,” Prime Minister Harris stated.