Non-resident platforms, SaaS and streaming providers in scope under broad, flexible rules
Grenada has joined the expanding list of jurisdictions moving to tax cross-border digital services. On 24 April 2026, Attorney General Claudette Joseph introduced the Value Added Tax (Amendment) Bill 2026, extending VAT to digital services consumed in Grenada, including those supplied by non-resident tech firms with no local presence.
There is no implementation date yet. Once approved, it will likely come with a 6-month preparation period. So likely Spring or Summer 2027.
Broad scope, future-proofed definition
The Bill adopts specific services, including:
- Streaming;
- online advertising;
- cloud computing;
- SaaS and
- e-learning platforms
But also a catch-all power for the Minister to expand scope via regulation. This will avoid constant legislative updates as business models evolve.
Platforms deemed supplier obligations
Grenada follows the now-standard “deemed supplier” approach. Where an electronic marketplace controls key elements of the transaction, processing payment, setting terms, enabling delivery, it becomes liable for VAT. This shifts compliance away from fragmented overseas sellers to a smaller number of platform operators.
B2B reverse charge, B2C registration
For B2B, Grenada introduces a reverse charge. Local VAT-registered businesses must account for VAT on imported digital services.
For B2C, non-resident suppliers must register and charge VAT. A simplified regime will be available, but without input tax recovery. Suppliers wanting full deductions must opt into standard registration.
It is not yet clear if there will be a VAT registration threshold – the current threshold for resident businesses is $300,000 per annum.
Identifying Grenada as Place of supply: multi-indicator test
VAT applies where two or more indicators point to Grenada:
billing address, IP address, bank location or other prescribed data. This aligns with OECD-style rules but leaves room for administrative interpretation.
Six-month soft landing
A six-month transition period offers breathing space. Non-resident suppliers and platforms must prepare and register, but VAT will not apply during this window. After that, full liability begins.
VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
Central and South America VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Argentina | 21% | Apr 2018 | – | |
| Aruba | 4% | Jan 2023 | - | |
| Bahamas | 10% | Jan 2015 | BSD 100,000 | |
| Barbados | 17.5% | Dec 2019 | BBD 200,000 | |
| Bolivia | 13% | Nov 2022 | - | |
| Brazil | 26.5% | 2026 | Nil | Aug 2026 first new VAT obligations |
| Chile | 19% | Jun 2020 | Nil | |
| Colombia | 19% | Jan-18 | Nil | |
| Costa Rica | 13% | Oct 2020 | Nil | Withholding VAT option |
| Curaçao | 6% | 2020 | Nil | |
| Dominican Republic | 18% | 2025 | Nil | Currently withholding VAT |
| Ecuador | 12% | 2025 | Nil | Previously withholding VAT |
| El Salvador | 13% | 2022 | - | Replace Withholding VAT |
| Grenada | 10% | 2027 | - | |
| 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% | 2024 | Nil | Withholding VAT |
| Puerto Rico | 10.5% | Jan 2020 | $100,000; or 200 transactions | Marketplaces |
| Suriname | 10% | Jan 2023 | SRD 500,000 | |
| Uruguay | 22% | Jan 2018 | Nil | VAT and Withholding Tax |