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Did you know that …

1. Value Added Tax (VAT) will be introduced in SVG January 2007.

2. VAT means Value Added Tax

3. VAT will be imposed on:

• Imports
• Business to business transactions
• Business to consumer transactions
• Transactions with Government

4. VAT will be charged on consumption made in SVG

5. VAT is not a new tax, it is a replacement tax.

6. VAT will replace the following taxes:

• Consumption tax
• Hotel Tax
• Stamp duty on receipts
• Telecommunication Surcharge

7. The VAT rate will be 15%

8. VAT will be paid on some goods and services

9. A business should be registered in order to charge and collect VAT.

10. Only businesses that are registered to charge or collect VAT will submit VAT
payments to the IRD.

11. A VAT payment is the difference between VAT collected on sales and VAT paid
on purchases and imports.

12. Input VAT is the VAT paid on:

• Imports
• Purchases

13. Output VAT is the VAT charged on sales.

14. A VAT invoice can only be used by businesses that are registered to charge and collect VAT.

15. Seven Caribbean countries have already introduced VAT:
Barbados, Jamaica, Trinidad & Tobago, Dominican Republic, Haiti, Dominica & Belize.

16. The following Caribbean countries are preparing to introduce VAT:
Guyana, Antigua and Barbuda, Grenada & SVG