The Inland Revenue Department (IRD) has moved to advance preparations for a VAT-Free Day promised by Prime Minister Philip J. Pierre for Christmas 2025, outlining the application requirements for VAT-registered businesses wishing to participate in the initiative.
In a memorandum dated December 12, 2025, the IRD advised that participation in the VAT-Free Day is voluntary; however, only VAT-registered businesses that submit an official application and receive approval will be authorised to offer VAT-free sales on the designated day.
Prime Minister Pierre publicly committed to the introduction of a VAT-Free Day ahead of Christmas 2025, stating that the measure forms part of the government’s efforts to ease the cost of living during the holiday season while providing a stimulus to commercial activity. The Prime Minister indicated that the initiative would be implemented once the necessary administrative and legal arrangements were in place.
According to the IRD, businesses seeking to participate must complete the official VAT-Free Day Application Form in full and submit it either via email to customerservice@ird.gov.lc or in person at any IRD office. The Department noted that applications must be submitted by a deadline to be announced.
The IRD explained that the application process is designed to ensure compliance with VAT legislation and to facilitate the smooth and orderly implementation of the Prime Minister’s promised initiative. Only approved and eligible businesses will be permitted to participate, and participating businesses must adhere to all guidelines governing VAT-Free Day, including the treatment of eligible and non-eligible items.
The Department has encouraged businesses to apply promptly to allow for timely processing and approval as preparations continue toward the Christmas 2025 rollout.
For additional information or assistance, businesses and members of the public are advised to contact the Inland Revenue Department at 468-4700 or email customerservice@ird.gov.lc.
The advisory was issued under the authority of Felicia Ellie (Ms), Comptroller of Inland Revenue (Ag.).
