PRESS RELEASE

Information for Shoppers

Minister of Finance, the Rt. Hon. Dr. Denzil L. Douglas has declared that Thursday, December 22nd, 2011 (between the hours of 12:01am and 11:59pm), will be Discounted VAT Rate Day (also known as 7% VAT Day or Black Thursday).

On DVR-Day, businesses that satisfy the criteria prescribed by the Inland Revenue Department will be allowed to discount the rate of VAT charged to and collected from customers on the sale of their goods and products. The discounted VAT rate shall be 7%. The normal VAT rate is 17%.

All tangible items that are presently subject to 17% VAT will qualify for the discounted VAT rate on DVR-Day. All non-tangible items such as the sale of services will continue to be subject to 17% VAT (examples: fees paid to professionals like accountants, doctors, lawyers; rent).

Information for VAT-Collectible Entities

Only businesses or entities that are registered with the IRD to charge and collect VAT that sell tangible goods (and not services like top-ups, lotto tickets, gambling, supplies by restaurants and hotels) and are in good standing with the IRD (with regards to their VAT filings and payments), may qualify to participate in DVR-Day.

To enroll, simply complete the special 7% registration form (available from the IRD) to indicate your business’ or entity’s desire to participate in offering the DVR on DVR-Day. All enrollment correspondence must be received by the IRD by close of business on Monday, December 19th, 2011. Enrollment correspondence can be sent to:

The Tax Reform Unit (St. Kitts)
Inland Revenue Department
3rd Floor E.C. Daniel Building
Cayon Street
Basseterre, St. Kitts
E-mail: info@sknvat.com

Or

The Tax Reform Unit (Nevis)
Inland Revenue Department
Main Street
Charlestown, Nevis
E-mail: info@sknvat.com

Any businesses or entities listed in the VTIN Registry that have not filed all of their VAT Tax Returns, or that haven’t settled all of their outstanding VAT liability to the IRD as at December 19, 2011, shall not be eligible to participate in offering the DVR on DVR-Day. Any businesses or entities with unresolved disputes that have not paid the required 50% of the amount of the dispute, shall not be eligible to participate in offering the DVR on DVR-Day.

Special Rules for Exchanges

Items purchased on DVR-Day at the DVR shall attract the normal rate of VAT (17%) if exchanged or returned after purchase. Items purchased prior to DVR-Day exchanged or returned on DVR-Day shall attract the normal rate of VAT (17%).

Filing Instructions

The IRD would provide the eligible VAT Registered businesses with information for filing.

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