Published 11 April 2024
Buckie Got It, St. Kitts and Nevis News Source
Consumer Information Notes
INTRODUCTION
Consumers in St. Kitts & Nevis can purchase goods at a lower VAT rate on Friday April 12, 2024, designated as the Discounted VAT Rate Day (DVRD). Participating businesses will be allowed to charge VAT at a rate of 5%.
Eligible Items
Tangible items that are presently subject to 17% VAT will qualify for the discounted VAT Rate on the DVR Day except for those listed below.
Items eligible MUST also be available for sale and immediate issuance or delivery to the customer on the DVR Day. Orders for items not in stock DO NOT qualify.
Non-Eligible Items
Professional services (Eg. Legal fees)
Rent & Tickets for game of chance (Eg. Lottery/Raffles)
Top-ups & Phone cards
Guns, Ammunition & Cigarettes
Alcoholic Beverages
Vehicles
Goods and Services imported on the DVR Day do not qualify for the reduced VAT rate.
Be Vigilant:
Consumers are advised to collect and review your receipt to ensure that the reduced VAT rate of 5% was charged if the Business was approved to participate in the DVR Day (see approved list on www.sknird.com). Any discount offered should be calculated on the VAT exclusive amount after
which the VAT should be applied. If the business did not apply/was not approved to participate, then the VAT charged should remain at 17%. Feel free to contact the Department with any
concerns you may have.
Are Items sold on Credit and Hire Purchase eligible for the reduced rate?
YES! Eligible goods sold under a credit or hire purchase agreement will qualify for the reduced rate of 5% if the sale is concluded on the DVR Day. Businesses are reminded that the VAT on the sales under credit terms must be reported in its entirety whether or not payment has been made in full during that tax period.
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Rules Governing Returns and Exchanges.
If a customer buys a good at the special 5% rate during the DVR Day and exchanges it on the same day for another good, the 5% rate will still apply. The special rate will NOT apply if the exchange is done after the DVR Day on Friday April 12th, 2024.
If a customer buys a good during the DVR Day and returns the item after the Day for a credit on the purchase of a different item, the 17% VAT Rate would apply to the sale of the newly purchased
item, even if it would have been eligible for the 5% rate during the DVR Day.
If a customer buys an item before the DVR Day but returns the item during the DVR Day and receives credit on the purchase of a different item, the reduced rate shall NOT apply on the sale of
the new item.
Approved Businesses
A list of businesses authorized to participate in the Discounted VAT Rate Day will be available on our website at www.sknird.com by Wednesday 10th April, 2024.
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Contact Information
St. Kitts
Inland Revenue Department
P.O.Box 34, Bay Road, Basseterre , St. Kitts
Tel: +1-869-465-8485
Nevis
Inland Revenue Department
Main Street, Charlestown,
Nevis
Tel: +1-869-469-5856
Email: [email protected]
Website: www.sknird.com or visit us at www.facebook.com/sknird
St. Kitts and Nevis Inland Revenue Department
“Building Our Nation Through Responsible Tax Administration”
