Barbados – Lovat Compliance

VAT Standard rate

VAT standard rate in Barbados in 2024 is 17,5%. It applies to supplies of goods and import. Export in Barbados is zero-rated, as well as some basic food items (salt, rice, pasta, some fruits, and other).

VAT registration threshold

VAT threshold in Barbados is BBD 200,000 (approx. EUR 94,000). Businesses have to register for VAT purposes in Barbados if their annual revenue exceeded this amount or expected to be so. Also, VAT registration in Barbados is required if the monthly revenue is greater than BBD 16,666.67 (approx. EUR 8,000). Voluntary registration is allowed.

The Lovat VAT compliance platform

Start free trial

Deductible VAT

Businesses can reclaim input tax by deducting it from output tax. Expenses that are not relevant to the business cannot be claimed for deduction. The input tax incurred by businesses not registered for VAT in Barbados is not the subject to refund.

Registration procedure

Within 21 days after threshold was exceeded business have to apply for VAT registration in Barbados online with the Tax Administration Management Information System (TAMIS). The following documents are needed:

Articles of Incorporation (Form 1)
Notice of Address/Change of Address (Form 4)
Notice of Directors/Change of Directors (Form 9)
Request for Name Search/Reservation (Form 33)
Certificate of Incorporation (Form 3)

Tax representative in Barbados is required for non-resident businesses.

VAT returns filing and payment date

Business must submit returns and pay VAT in Barbados on bi-monthly basis. The deadline is the 21th of the month following the reporting period.

Penalties in Barbados

Penalty for late filing of VAT returns – BBD 100 (approx. EUR 47).
Penalty for late payment – 10% of amount due.
Penalty for fraud – criminal penalties may apply.

Need help with VAT compliance?

Book a demo

VAT standard rate

On December 1, 2019, Barbados introduced a new tax reform that obliges non-resident digital service providers to pay 17.5% VAT.

Vat zero rate

Applies to the supply of educational and scientific literature on electronic media.

The Lovat VAT compliance platform

Start free trial

Threshold

There is no threshold after which it is necessary to register as a VAT payer. Registration must be completed before the first sale of services to Barbados.

Currently, the Barbados tax authorities are preparing further step-by-step instructions on the functioning of VAT for non-resident companies providing digital services.

Registration procedure

The application for registration is submitted online to the Tax Administration Management Information System (TAMIS). It is then reviewed within 5 days, and with all the necessary information, the taxpayer number is approved.

Tax representative

Appointment of a tax representative is not mandatory, but it is possible for further resolution of cases at the request of the company.

Keeping records

In Barbados, all tax records, including tax invoices, ledgers, proforma accounts, invoices, and other records related to the payment of VAT, must be kept for 7 years after the end of the reporting period. All these records may also be stored electronically but must be easily accessible to supervisory authorities.

Filling VAT return and payment date

Reporting periods in Barbados for VAT are two months. Therefore, the declarations must be submitted using the Barbados Revenue Authority’s (TAMIS) system and paid by the 21st day of the month following the reporting period in an online format.

Need help with VAT compliance?

Book a demo