Running a business in Barbados means working with Value Added Tax (VAT) on most of your transactions. At 17.5%, Barbados has one of the higher VAT rates in the Caribbean. This guide explains how to calculate it, what's exempt, and how to stay compliant with the Barbados Revenue Authority (BRA).
What Is VAT in Barbados?
VAT in Barbados is a consumption tax on goods and services at 17.5%, administered by the Barbados Revenue Authority (BRA). It replaced the previous 15% rate in recent years.
How to Calculate VAT (17.5%)
VAT Amount = Subtotal x 17.5%
Invoice Total = Subtotal + VAT Amount
Example Calculation
You run a catering business in Bridgetown:
| Item | Amount |
|---|---|
| Catering Services | BBD$5,000 |
| VAT (17.5%) | BBD$875 |
| Total Due | BBD$5,875 |
Zero-Rated and Exempt Items
Zero-Rated (0% VAT)
- Basic food items
- Exported goods and services
- Prescription medicines
- International transport
Exempt (No VAT)
- Financial services
- Residential accommodation
- Medical services
- Education
Registration & Filing
Register at the BRA in person or online. VAT returns are due monthly — by the 21st of the following month. Late filing attracts penalties plus interest at the prescribed rate.
Invoicing on VEDTECH
Every instance runs standard Odoo Community with Invoicing included. You can install the other standard Odoo Community apps, such as CRM, Sales, Inventory and Website, from your instance's Apps menu.
- Create and email professional invoices with your logo
- Set up the tax rates you charge; every invoice shows the tax separately
- Record payments and issue credit notes
- Your customers view and download their invoices online
Full accounting, payroll and Caribbean tax filing are not part of VEDTECH. Talk to us about what your business needs.
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