There will be a change in the registration threshold for businesses required to pay Value Added Tax (VAT) effective May 1, 2017.

Comptroller of the Inland Revenue Department (IRD) Kelvin Pompey said that previously a business had to gross EC$120,000 to register for VAT but come May 1, a business will have to be earning gross revenue in excess of $300,000 on a yearly basis in order to be registered for VAT.

Mr. Pompey said his department has been doing an analysis of the VAT sales reported by businesses over the past five years, and is now in a position to determine which businesses should be removed from the VAT list given the increase in the threshold.

He said the Inland Revenue Department will be contacting those businesses which it deems should be removed from the VAT list, but until then all businesses should continue to collect VAT unless they are otherwise so advised by the Inland Revenue Department.



Please enter your comment!
Please enter your name here