Trinidad and Tobago has announced plans to impose 12.5% VAT on digital services supplied by non-resident businesses from 1 March 2027. The measure forms part of wider VAT reforms announced by Finance Minister Davendranath Tancoo in the National Budget Address on 12 October 2026.
The government expects the new digital services VAT to generate approximately TTD 18 million in additional annual revenue.
VAT on non-resident digital services
The new rules will extend VAT to digital and remote services supplied by overseas businesses to customers in Trinidad and Tobago.
Services potentially affected include:
- Online streaming and entertainment subscriptions
- Software and cloud-based services
- Digital platforms and online subscriptions
- Other remotely supplied digital services
Non-resident suppliers will be able to use a simplified electronic VAT registration system to register, collect and remit VAT without establishing a local presence.
The simplified procedure will also cover non-resident suppliers providing taxable services connected with immovable property located in Trinidad and Tobago.
Further legislation and administrative guidance are expected to clarify the precise scope, registration requirements and treatment of business-to-business transactions.
Implementation and next steps
The digital services VAT proposal follows the international trend towards taxing cross-border digital consumption in the customer’s jurisdiction.
Overseas digital service providers will need to assess their exposure, establish VAT registration procedures and update billing systems ahead of the proposed 1 March 2027 implementation date.
The measures remain subject to legislative approval through the Finance Bill, with further details of the simplified registration system still to be published.
