On 25th and 26th August many items and products will have a reduced VAT tax rate of 5%, the SKN Dept. of Inland Revenue has announced. The department seems to be going all out to encourage islanders to spend as much money as possible on those two days.
Here’s what it says!
Get ready for unparalleled savings as the highly anticipated Discounted Value Added Tax (VAT) Rate Days approach on the 25th and 26th of August 2023.
This limited-time event will allow all approved VAT-registered businesses to offer their customers a reduced VAT rate of 5% on the sale of goods.
There will be special deals on the sale of vehicles, thus providing an exceptional opportunity to enjoy significant discounts on cars and trucks.
During these two remarkable days, customers can take advantage of a reduced VAT rate of 5% on eligible goods, which typically fall under the 17% VAT bracket.
This exceptional offer applies exclusively to tangible items that are available for immediate issuance or delivery on the Discounted VAT Rate Day.
VAT will also be exempt on the first $50,000 of the cost of vehicles except in cases where duty-free concession is applied.
Any vehicle cost more than $50,000 will attract the standard rate of 17% VAT.
It is the perfect time to make those long-awaited purchases, as numerous items that were previously subject to a higher VAT rate will now be offered at a reduced cost.
It is important to note that only items in stock qualify for the Discounted VAT Rate.
Unfortunately, orders for items that are not readily available will not be eligible for this special pricing, so it will not include Internet purchases.
Additionally, certain items are excluded from this promotion to ensure the safety and well-being of our customers. Guns, ammunition, cigarettes, and alcoholic beverages will not have VAT reduced on the tax holiday days.
In the case of alcoholic drinks, a variety of products will not be eligible for the reduced VAT rate. This includes but is not limited to Wine, Brandy, Vodka, Whiskey, Gin, Rum, Liqueurs, Beer, Guinness, Royal Stout, Carib, and Smirnoff Ice. However, some other alcoholic products will still be available at the 5% VAT rate, allowing customers to make some savings.
Don’t miss out on this extraordinary opportunity to save a lot on your favorite items (says the SKN tax office). Participate on the 25th and 26th of August 2023, and take full advantage of the Discounted VAT Rate Days. Experience the joy of acquiring high-quality products at significantly reduced prices.
Businesses wishing to participate may access the application form via the Inland Revenue Department’s website at www.sknird.com or the IRD’s offices in Basseterre and Charlestown. Applicants must return the application form on or before 22nd August,2023 at 4:00 pm. Businesses are encouraged to submit their application via email at inlandrevenue@ird.gov.kn.
Source: SKNIS press release.
