Inland Revenue Shares Tips For VAT Day

By: Chaïra Flanders

Basseterre, St. Kitts, December 18, 2019 (ZIZ News): The Inland Revenue Department has shared a few tips and reminders for consumers ahead of the second and final designated Reduced Vat Rate Day this week.

Businesses are required to apply if they are interested in participating in the Discounted Vat Rate Day. Once approved, the business will be allowed to charge a reduced rate of 5% on all tangible items that were previously subjected to the 17% rate.

Assistant Comptroller at Inland Revenue Department, Sheleen Matthew said it is important to note how the buying and selling of vehicles is impacted by Reduced Vat Rate Day.

She said, “For vehicle purchases, VAT will be exempt on the first EC$50,000, with VAT at the standard 17 percent charged thereafter.”

The Assistant Comptroller also explained that vehicles or appliances must be in stock for the Vat Rate to apply.

Meanwhile, Senior Tax Inspector at the Inland Revenue Department, Vanessa Jeffers said  “imported vehicles are not eligible for the Vat Discounted Day”.

She also used the opportunity to advise the public to pay keen attention to the products and pricing before they are purchased.

Jeffers urged buyers to back check their receipts and make sure that their discount has been applied.

She said consumers are being encouraged to contact the Inland Revenue Department at 465-8485 and Consumer Affairs if fraud is detected or if a business is suspected of promoting misleading prices.

Guns, ammunition, cigarettes and alcoholic beverages are not eligible for discount on Reduced Vat Rate Day.

The second Reduced Vat Rate day is slated for Saturday 21st, December.