Barbados Tax Agency Announces Updated VAT Rate on Electricity, Exemptions on Certain Equipment

The Barbadian Revenue Authority April 4 issued Guidance Notes OGC Nos. 03/2024, 04/2024, and 05/2024, announcing VAT rates for electricity, and exemptions for certain equipment, as announced in budget proposals for the financial year 2024-2025. The guidance notes include: 1) a reduced VAT rate of 7.5 percent from 17.5 percent, for the usage of the first 250 kilowatt-hours of electricity supplied to consumers classified under the Domestic and Employee tariffs, effective from April 1 until Sept. 30; 2) the application of the standard VAT rate of 17.5 percent to the supply of electricity over 250-kilowatt hours; 3) a two-year extension ...