Welcome to Trinidad and Tobago VAT Calculator 2025
TRINIDAD and TOBAGO VAT CALCULATOR
VAT (Value Added Tax) is a key tax system in Trinidad and Tobago, applying to a broad spectrum of goods and services. The standard VAT rate is 12.5%, but there are specific goods and services that are zero-rated or exempt based on local tax laws.
✅Standard VAT Rate 12.5%: In Trinidad and Tobago, the majority of goods and services are subject to the standard VAT rate of 12.5%. This rate applies to most commercial supplies made within the country.
✅Zero VAT Rate (0%): In the Trinidad and Tobago Certain essential goods and services are zero-rated Basic food items, Agricultural supplies & Crude oil & natural gas.
✅VAT-Exempted : Certain services in the Trinidad and Tobago, such as financial services, Educational services, Real estate brokerage services & Residential rentals are fully exempt from VAT.
Use our Trinidad and Tobago VAT Calculator to quickly and accurately calculate VAT for all your business transactions. Stay compliant with the latest VAT rates & laws and ensure your business operates smoothly!
Value Added Tax (VAT) in Trinidad and Tobago
Value Added Tax (VAT) was introduced in Trinidad and Tobago in 1997 as a means to simplify the tax system and generate revenue for the government. The Trinidad and Tobago VAT law is governed by the Value Added Tax Act, which applies on most goods and services. Over the years, the VAT system has undergone various updates to ensure compliance with international standards, including exemptions and zero-rated categories.
In Trinidad and Tobago, VAT-registered businesses must collect VAT from customers, file regular VAT returns, and pay any VAT owed to the Inland Revenue Division. Businesses can also deduct VAT paid on purchases from the VAT they collect. If the VAT paid exceeds the VAT collected, the Inland Revenue Division will issue a refund.
Standard VAT Rate
In Trinidad and Tobago, Value Added Tax (VAT) is applicable to a wide range of goods and services. The standard VAT rate for commercial supplies is 12.5%, ensuring uniform tax collection across various sectors.
Zero VAT Rate (0%)
The following goods and services are zero-rated, meaning they are not subject to VAT:
- Basic food items: Essential foods are exempt from VAT to make them affordable for residents.
- Agricultural supplies: Items related to agriculture and farming are zero-rated to support the sector.
- Crude oil & natural gas: These key energy resources are exempt from VAT to maintain industry competitiveness.
- Exported goods & services: Exports outside Trinidad and Tobago are VAT-exempt to promote international trade.
- Hotel accommodation & yachting services to non-residents: Tourism services like hotel stays and yachting services provided to non-residents are zero-rated.
VAT-Exempted Services
Certain services are fully exempt from VAT, including:
Exemptions for Manufacturers
Certain highly capital-intensive manufacturers can enjoy VAT exemptions on imported inputs, reducing their tax burden to encourage production and economic growth.
Who Needs to Register for VAT in Trinidad and Tobago?
In Trinidad and Tobago, individuals or businesses must register for VAT if their sales exceed TT$500,000 in a 12-month period. Businesses are also required to register if they anticipate reaching this threshold in the coming year. VAT registration ensures compliance with the country’s Value Added Tax laws and is essential for businesses engaged in taxable goods and services.
If a registered business ceases operations or no longer meets the TT$500,000 revenue threshold, they must apply for VAT registration cancellation. Additionally, companies making commercial supplies with revenues of TT$600,000 or more within a 12-month period are also subject to VAT registration. Staying compliant with VAT regulations is crucial for businesses to avoid penalties.
Customs Duties in Trinidad and Tobago
Customs duties are applied to imported and manufactured goods based on their classification in the Customs Act. The rate is determined by the cost, insurance, and freight (CIF) value of the goods at the time of import. There are also exemptions for specific goods, ensuring businesses can navigate the import process efficiently.
Excise Taxes on Manufactured Goods
In Trinidad and Tobago, excise taxes are levied on certain manufactured goods like tobacco, alcohol, and petroleum products. These taxes vary depending on the type of product, and businesses need to account for these additional costs when pricing goods in the market.
Property Taxes in Trinidad and Tobago
All land in Trinidad and Tobago is subject to property tax under the Property Taxes Act (PTA). This includes not just land, but also any buildings, structures, machinery, or fixtures attached to the land. The annual rental value (ARV) is assessed by the Commissioner of Valuations, with tax rates varying based on property type:
- Agricultural property: 1%
- Residential property: 2%
- Commercial property: 5%
- Industrial property: 6%
Currently, residential property tax has been implemented.
Stamp Duty in Trinidad and Tobago
Stamp duty is levied on legal instruments like deeds of conveyance, mortgages, and insurance policies. The rates vary, with fees starting at TTD 25 for trust deeds and rising to 10% of the market value for property conveyances.
Payroll Taxes in Trinidad and Tobago
Under the Pay-As-You-Earn (PAYE) system, employers must deduct income tax from employees’ salaries and other emoluments, such as wages, bonuses, and commissions. This ensures timely tax collection for the government and compliance for businesses.
Social Security and National Insurance in Trinidad and Tobago
Social security contributions, also known as National Insurance, are deducted at varying rates from employee wages. For monthly incomes over TTD 13,600, the maximum weekly contribution is TTD 414.30, split between the employer and employee.
Hotel Accommodation Tax
Hotel accommodation tax in Trinidad and Tobago is set at 10% of the accommodation value, applying to all hotel stays. This tax is an important revenue source for the government, contributing to tourism and hospitality-related services.
Insurance Premium Tax
An insurance premium tax is applied at a rate of 6% on general insurance contracts. Life insurance and reinsurance premiums are exempt from this tax, providing some relief to those purchasing insurance policies.