Value Added Tax

As part of the tax reform program undertaken by the Government of Dominica to simplify and rationaliaze the tax system in Dominica, the Value Added Tax (VAT came into effect on March 1, 2006. The VAT replaced the Consumption Tax, Sales Tax, Hotel Occupancy Tax and Entertainment Tax.

Governance

Payee

  • Registered persons collect VAT from the purchases of goods and services supplied locally on behalf of the Government of Dominica
  • In the case of supplies which are taxable at the rate of 15% and 10%, the tax payable must be accounted for by the taxable person making the supply
  • In the case of an import of goods, the tax must be paid by the importer, in case of an import of service, the tax must be paid by the recipient of the service

Due Date

  • VAT is due on the 20th of the following month

Tax Rate

  • The tax is imposed at a rate of 15% of the value of every taxable supply by a taxable person in Dominica except if the supply is classified as accommodations & diving activity which carries a rate of 10%
  • There are also goods which are taxable at a rate of zero percent (zero-rated items)

VAT Charges

  • VAT is charge on taxable imports at the port of entry and on taxable goods and services supplied locally

Filing

  • Every registered person is required to file a tax return for each tax period with the Comptroller within 20 calendar days after the end of the period, whether or not tax is payable in respect of that period. This return should be in the form prescribed by the Comptroller and should state the information necessary to calculate the tax
  • Upon application in writing by a person, the Comptroller may, where good cause is shown by the person, extend the period within which a return is to be filed. However the granting of an extension of time does not alter the due date for payment of the tax

Penalties

  • Every Return not filed by the 20th of the following month will be subject to a charge of $100 monthly or part therepf until the Return is submitted
  • For every Return being submitted for which there is a tax liability, the liability must be settled by the 20th of the following month in order to avoid the 10% late payment penalty

Interest

  • Tax which is not paid by the date upon which it becomes due and payable shall bear interest at the rate of one percent per month or part thereof for the period during which it remains unpaid

Offences

  • A promoter of public entertainment who fails to obtain approval from the Comptroller shall be fined $10,000.00 or imprisoned for two years or both in addition to be liable to 15% of the value of the tickets printed for the entertainment

View all forms on our Forms & Publications page.