Welcome to Barbados VAT Calculator – Easily Calculate VAT

BARBADOS VAT CALCULATOR

In Barbados, Value-Added Tax (VAT) is levied on a wide range of goods and services at different rates:


✅ Standard VAT Rate: 17.5% on most goods and services, including imports and supplies from VAT-registered businesses.
✅ Tourism & Hotel VAT Rate: 7.5% on accommodation in the hotel sector and direct tourism services.
✅ Mobile Services VAT: 22% on certain telecommunications services.
✅ VAT-Exempt Supplies: Some goods and services qualify for VAT exemption.


In addition to VAT, Excise Tax applies to specific goods:
🔹 Taxable Goods (excluding spirits): Manufactured or produced in Barbados and sold locally.
🔹 Spirits: Manufactured or produced in Barbados and removed from a warehouse.
🔹 Imported Taxable Goods: Excise tax applies upon importation.
🔹 Excise Tax Rates: Ranging from 5% to 60%, depending on the product type.


Furthermore, the National Social Responsibility Levy (NSRL) is charged at 2% on imports and domestic outputs.

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Barbados Value-Added Tax (VAT) Rates & Regulations 2025

Barbados introduced Value-Added Tax (VAT) on 1 January 1997 as a consumption-based tax replacing several indirect taxes. Initially set at 15%, the VAT rate has undergone multiple changes over the years to align with economic policies and revenue needs. Currently, Barbados VAT is levied at a standard rate of 17.5% on most goods and services, with specific reduced and zero-rated categories to support key industries such as tourism and exports.

For businesses and consumers, understanding Barbados VAT laws is crucial to ensuring compliance, reducing tax liabilities, and optimizing financial planning. Using a Barbados VAT Calculator can help estimate VAT costs accurately and simplify tax calculations.

Barbados Currency Notes

VAT Rates in Barbados

Barbados applies different VAT rates based on the nature of goods and services:

✅ Standard VAT Rate: 17.5% on most goods and services, including imports and supplies from VAT-registered businesses.
✅ Tourism & Accommodation VAT: 10% (increased from 7.5% as of 1 January 2020) for hotels, guest houses, inns, and vacation rentals.
✅ Mobile Services VAT: 22% on voice, data, and text messaging services.
✅ Zero-Rated Supplies: 0% VAT applies to essential items such as:

  • Exports
  • Basic food items
  • Prescription drugs
  • Crude oil
  • Legal and accounting services for the international financial services sector

✅ Exempt Supplies: No VAT is charged on certain essential services, including:

  • Financial services
  • Real estate transactions
  • Medical services
  • Education services

VAT Registration Requirements in Barbados

Businesses operating under Barbados’ VAT regime must register if their annual taxable turnover meets or exceeds BBD 200,000. However, voluntary VAT registration is available for businesses below this threshold.

Who Needs to Register for VAT?

  • Businesses with annual sales over BBD 200,000 (mandatory registration)
  • Companies that supply zero-rated goods and services
  • Voluntary registration is allowed for businesses below BBD 200,000

VAT on Digital Services in Barbados

Since 1 December 2019, VAT applies to digital services sold to Barbados consumers by foreign and local providers. This means that international companies providing online services must register, collect, and remit VAT in Barbados.

How VAT Affects Online Transactions

  • Foreign vendors selling digital goods & services to Barbados consumers must charge VAT.
  • VAT applies to online purchases from both local and foreign vendors when consumed in Barbados.
  • Transactions processed outside Barbados but consumed locally are also subject to VAT.

Input Tax Deductions & VAT Refunds

Registered VAT businesses can deduct input tax from their output tax liability, ensuring they only pay VAT on the value added.

✅ VAT Refund Eligibility:

Refunds apply to zero-rated supplies (such as exports).

If input VAT exceeds output VAT, businesses can claim a refund.