F.A.Q.

The price quoted, advertised or displayed must always be VAT inclusive. This means that the price that is shown on the shelf or is given to you prior to the purchase is the final price.

All non-registered persons should be given a receipt by the registered person for every purchase. If the consumer is not given a receipt, one should be requested.

Persons registered for VAT should be given a proper tax invoice for every purchase from a registered supplier.

Businesses with annual taxable supplies in excess of $ 250,000 are required to register for VAT. 

An activity which is carried on continuously or regularly by any person in Dominica or partly in Dominica, whether or not for profit. The activity involves or is intended to involve the supply of goods or services to another person for consideration.

The VAT that is paid or payable on the domestic purchase or import of a taxable good or service by a taxable person.

The VAT that is charged by a registered person on the sale/supply of a taxable good or service.

• VAT is charged at the rate of 15% on goods and services
• Accommodation in a hotel or similar establishment and dive activity is charged at the rate of 10%

VAT is the acronym for Value Added Tax which is levied on all forms of consumer spending- both on goods and services. The tax is paid on the domestic purchase of taxable goods and services and the import of taxable goods and services.

• With the introduction of VAT, the following taxes were repealed
• Sales Tax
• Consumption Tax
• Hotel Occupancy Tax
• Entertainment Tax

No VAT is charged on an item that is exempt.

Any item that is zero-rated is taxed at the rate of 0%.

• Medical Services
• Financial Services
• Day Care Services
• Educational Services
• Sale of locally produced bread
• Water supplied by DOWASCO
• Books and printed material
• Residential rent
• Most supplies used by farmers and fishermen in their work
• Domestic and International transportation of goods and passengers

• Basic commodities- Rice, Flour, Sugar, Milk, Infant formula
• Fuel
• The first 100 Units of electricity provided by DOMLEC to a dwelling

Only persons registered for VAT can charge and collect VAT.