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GIS – The Government of Saint Lucia has proposed amendments to the Value Added Tax (VAT) Act. The VAT Act currently makes provision for the exemption of an unconditional gift of a good to the state.
Prime Minister the Hon. Dr. Kenny D. Anthony, during his 2015/2016 budget address, proposed an extension to this exemption.
“I propose that this exemption be extended to an unconditional gift of “service” to the state.”
An amendment to Schedule Three of the VAT Act will also exempt the importation of replacement goods.
“I propose also, to exempt replacement goods which are re-imported to the state. If someone returns a faulty good to an exporter and the good is replaced with a similar item of the same value, there is no provision to exempt that replacement item from VAT.”
Additionally, Dr. Anthony says zero rated businesses will no longer need to apply for refunds. “The VAT Act currently requires a business dealing in zero rated supplies to apply for a monthly refund on a prescribed application form. We will now ensure that these refunds are paid automatically, provided that all necessary criteria are met.”
According to the Prime Minister, this will minimize the administrative burden on the department and businesses.