Barbados Tax Agency Issues Policy Note on Extension of Reduced VAT Rate for Electricity Supply

The Barbadian Revenue Authority Oct. 19 issued Policy Note No. 007/2023, announcing government approval of an extension of the end date, to March 31, 2024, from Sept. 30, 2023, for the reduced VAT rate of 7.5 percent on the first 250 kilowatt hours of electricity supplied to households. The policy note also clarifies that: 1) the standard 17.5 percent VAT rate applies to electricity supplied in excess of 250 kilowatt hours; 2) the reduced VAT rate is effective for bills issued between Oct. 1, 2023, and March 31, 2024; and 3) the reduced VAT rate doesn’t apply to the supply ...