Barbados has joined various other countries around to world by also introducing VAT (17.5%) on digital services. The new tax measure will apply to foreign suppliers of digital services to local consumers on the Caribbean island. The foreign companies must apply, collect, and remit VAT on their digital sales. Such rules are also in place in the Bahamas at the other end of the Caribbean.
The new measure on digital service VAT will effect:
From 1st December 2019, foreign suppliers of digital services must register with the country’s Tax Administration and file their VAT returns quarterly.
It is important to know that there is no minimum sales threshold. The registration obligation exists from the first sale and another additional rule applies: invoices must also be issued to the purchaser of the digital services.
Global VAT Compliance specializes in helping international businesses be VAT compliant worldwide offering VAT solutions to Digital Companies. Contact us for more information info@gvc.tax.
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