Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 17.5% | 10% | 22%, zero-rated (0%) and exempt |
The local name for VAT in Barbados is Value-added tax (VAT).
There are basically 3 VAT rates in Barbados:
- Standard VAT rate is 17.5%
- Reduced VAT rate is 10%
- A higher rate of 22%
Recent developments
For more information about (recent) rate change developments in Barbados, please click HERE.
Standard rate: 17.5%
This rate applies for all transactions that take place in Barbados, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 10%
- Accomodation services
- Tourism services
Higher rate: 22%
- Mobile phone services
Zero rate (0%)
- Financial Services
- Water
- Exported goods and services
- Selected food items
- Prescribed drugs
- Veterinary services
- International cruises
- Imported inputs for manufacturing
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on November 1, 2021.
