(ZIZ) — Hundreds of shoppers on Thursday flocked to major food and retail outlets to take advantage of the reduced VAT rates that were being offered.
The government initiative saw businesses offering their goods at a reduced VAT rate of five percent (5%).
The reduced VAT prices are applied to both local purchases and imported purchases from abroad.
Over the preceding years, an average of 108 local businesses have taken part in the discounted vat day and have benefited greatly from the increased consumer activity as average daily sales of ec$13 million have been registered.
The second reduced vat day this year will be held on Thursday, December 19th.
The same restrictions will be applied for the second VAT day.
There will be NO discounted VAT on guns and ammunition, alcohol, vehicles and cigarettes; NO discounted VAT on the sale of services such as legal fees, tickets for lottery and raffles, top-ups and phone cards, etc. That is to say, the VAT will be discounted for goods ONLY.
Business persons not in good standing with regard to their taxes will not be able to participate in the discounted VAT day and are asked to regularize their status with the Inland Revenue Department and the Customs Department.
This decision to reduce the VAT to 5% for December 5th and December 19th is taken in accordance with Sections 26(1) and 26(2) of the VAT Act of 2010.