VAT-free day set for December 22

Christmas shopping just got sweeter. Saint Lucians will enjoy a VAT‑free day on December 22, now formally approved by Parliament. Ahead of the December 1 general elections, Prime Minister Philip J. Pierre had promised a VAT‑free day, and on Tuesday, during the first sitting of Parliament following the polls, he moved to make it official […] The article VAT-free day set for December 22 is from St. Lucia Times.

VAT-free day set for December 22

Christmas shopping just got sweeter. Saint Lucians will enjoy a VAT‑free day on December 22, now formally approved by Parliament.

Ahead of the December 1 general elections, Prime Minister Philip J. Pierre had promised a VAT‑free day, and on Tuesday, during the first sitting of Parliament following the polls, he moved to make it official by tabling a motion to amend the VAT Act. The amendment allows the Inland Revenue Department to make the necessary adjustments ahead of the designated day.

“Be it resolved that Parliament by affirmative resolution approves the draft Value Added Tax amendment of Schedule 1… to include as zero‑rated goods on the 22nd day of December 2025,” Pierre said in the House.

The exemptions will apply to goods for which transactions are completed on that date by a taxable person specified by the Controller of Inland Revenue.

The Prime Minister noted that several categories will not qualify, including motor vehicles, gasoline, LPG, diesel, guns and ammunition, tobacco products, alcoholic beverages, and the import of goods and services not normally zero‑rated.

“That means, Mr. Speaker, that the entire public, if they purchase from businesses that are involved, will have basically a 12.5% discount on everything that they buy (except the exempted goods and services),” Pierre said.

Professional services, legal fees, restaurant supplies, rent, tickets for games of chance, phone cards, internet and cable services, sales by acquisition providers and other tourism‑sector providers, and imports of goods and services are also ineligible.

“So stoves, televisions, clothes, carpet, food, Christmas trees – everything that you buy locally… you pay no VAT,” Pierre said.

Participation by local businesses is not mandatory. Last week, the Inland Revenue Department (IRD) outlined the process for those wishing to take part.

“The Inland Revenue Department wishes to advise all VAT‑registered businesses that in order to participate in Saint Lucia’s VAT‑free Day, an official application must be submitted,” read a notice signed by Acting Comptroller of Inland Revenue Felicia Ellie.

The notice emphasised that participation is voluntary and that only businesses completing and submitting the required application forms will be approved to offer VAT‑free sales on the designated day. “This process ensures compliance with the VAT legislation and supports the smooth implementation of this national incentive,” it added.

Following Tuesday’s announcement in Parliament, a list of eligible zero‑rated goods and participating businesses is expected to be published.

Saint Lucia’s current VAT rate, one of the talking points during the recent political campaign, is 12.5%, reduced from 15% when first introduced in 2012. Purchases also attract an additional 2.5% health and security levy.

The article VAT-free day set for December 22 is from St. Lucia Times.