Hon. Mark Brantley, Premier and Minister of Finance in the Nevis Island Administration (NIA), is hopeful that the two discounted value added tax (VAT) rate days in December will help to give an economic boost to businesses on the island.
Dr. the Hon. Timothy Harris, Prime Minister of St. Kitts and Nevis, announced on November 10, 2020, that the discounted VAT rate days for 2020 will be December 18 and 19.
Commenting on the announcement, Premier Brantley said “The intention is to spur some much-needed economic activity during this time as we seek to restart the economy post COVID. We are hopeful that residents will take advantage of the concessions and save significantly.”
On discounted VAT rate days the 17 percent VAT on tangible items is reduced to five percent for consumers shopping on those days. The tax concession is not applicable on services, and only businesses in good standing with the Inland Revenue Department can apply to participate.
On December 18 and 19 VAT will be exempt on the first $50,000 for vehicle purchases. The standard 17 per cent VAT is applicable thereafter.
During the month of December consumers will also be able to benefit from the annual duty-free concession on non-commercial imports of up to 400 pounds in weight or EC $540 of the value of the goods.