Talking VAT

On Thursday October 15, the Lions Club of Castries devoted its social meting to talk VAT.  The guests at  that meeting were Mr Augustus Amede and Mr Kurt Reynolds from the VAT Office. 

 

Some of the issues highlighted included:
What is VAT?
The Value Added Tax system or VAT as it is commonly known, is an indirect tax usually on imports and the added value to the goods and services, supplied by one business to another or to a final consumer.  VAT is designed to ensure that most forms of consumer spending are taxed evenly and fairly.

How will VAT affect me?
Final Consumers: Because VAT replaces and reduces the number of indirect taxes on the goods and services you currently buy or use,m oftentimes the final price of most good and services will be reduced.  The prices of goods and services which currently have little or no taxes are likely to increase.  However, in order to not have an adverse effect on the lives of vulnerable groups in society, some goods will be exempted from VAT and others will be taxed at a rate of zero percent.  This means the final consumer will pay no tax on these purchases.

Businesses: If you are a registered business, you will pay VAT on your purchase from another registered business.  You will charge VAT on the sales you make, but you can off-set the VAT paid against the VAT collected.  The difference is paid to or available for refund from government........

If you  are not registered for VAT, you will pay VAT on your  purchases form any registered business.  You cannot charge VAT or claim credit for any VAT you have paid.

 














For further information visit the VAT Implementation  Project Office at No. 4 Bridge Street Castries, Saint Lucia or the website: www.vat.gov.lc