Navigating VAT in Barbados

This guide provides an overview of VAT in Barbados, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Barbados.

Last Updated: November 2025

Tourism is a big target: VAT applies to hotel stays and holiday services at a reduced rate to encourage visitors.

Barbados at a glance.

Standard rate

17.5% VAT

Digital services VAT

Yes, at 17.5%

Mandate e-invoicing

No

Currency

Barbadian Dollar (BBD)

Zero-rated items

Zero-rated supplies cover selected goods, essential items, transport services, and certain equipment.

VAT format

13 digits

Fiscal representation

Yes, under certain circumstances.

e-invoicing in Barbados.
Summary of the mandate in this country

B2G mandate in place

No

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

To be announced

B2B e-Invoicing model

N/A

Name of exchange infrastructure

N/A

Format(s) used

N/A

FAQs

Businesses must register if their annual turnover is BBD 200,000 or more.

VAT returns are generally filed bi‑monthly (every two months).

Yes, input VAT can be reclaimed by offsetting it against output VAT (the VAT you collect on sales) in your VAT return.

Nearby countries.

Explore indirect tax information in these countries:

Brazil
Colombia
Costa Rica

Related content.