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Barbados VAT on foreign digital services

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
  • E-learning
  • Apps
  • SaaS or cloud-based software
  • Streaming or download software
  • Online storage
  • Advertising

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
Argentina 21% Apr 2018
Bahamas 10% Jan 2015 BSD 100,000
Barbados 17.5% Dec 2019 BBD 200,000
Bolivia 13% Nov 2022 -
Brazil n/a n/a n/a Various proposals
Chile 19% Jun 2020 Nil
Colombia 19% Jan-18 Nil
Costa Rica 13% Oct 2020 Nil Withholding VAT option
Dominican Republic 18% 2023? Nil Currently withholding VAT
Ecuador 12% Sep 2020
El Salvador 13% 2022 - Replace Withholding VAT
Guatemala 12% TBC
Honduras 15% 2022 HNL 250,000
Panama 10% 2022 Withholding VAT
Paraguay 10% Jan-21 Nil Withholding VAT; 4.5% DST
Peru 18% 2022 Nil Withholding VAT
Puerto Rico 10.5% Jan 2020 $100,000; or 200 transactions Marketplaces
Uruguay 22% Jan 2018 Nil VAT and Withholding Tax

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