Barbados implemented its Value Added Tax on non-resident providers of digital services (and goods bought online from abroad) in December 2019. There is no guidance on the position of marketplaces and their shared liabilities.
Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms. The current VAT rate in Barbados is 17.5%.
What digital services are subject to Barbados VAT?
Income from the following services is liable to VAT:
- Gaming and games of chance
- SaaS or cloud-based software
- Streaming or download software
- Online storage
VAT registration and compliance
There is no electronic services VAT registration process for non-residents in the Barbadoa – the same requirements are for resident businesses are required. Providers must register with the Revenue Authority’s Tax Administration Management Information System (TAMIS) once they approach the annual VAT registration threshold of BBD 200,000.
VAT returns must be filed on bi-monthly basis. The submission must be made by the 21stof the month following along with any VAT liability payment. The return can be filed electronically via TAMIS portal.
Compiling VAT or GST return can be complex. VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditorintegrated tools.
Central and South America VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Bahamas||10%||Jan 2015||BSD 100,000|
|Barbados||17.5%||Dec 2019||BBD 200,000|
|Costa Rica||13%||Oct 2020||Nil||Withholding VAT option|
|Dominican Republic||18%||2023?||Nil||Currently withholding VAT|
|El Salvador||13%||2022||-||Replace Withholding VAT|
|Paraguay||10%||Jan-21||Nil||Withholding VAT; 4.5% DST|
|Puerto Rico||10.5%||Jan 2020||$100,000; or 200 transactions||Marketplaces|
|Uruguay||22%||Jan 2018||Nil||VAT and Withholding Tax|