Parliament has approved an unprecedented amendment to the VAT Act, to facilitate Saint Lucia’s first VAT-Free shopping day.
The amendment was tabled by Prime Minister Philip J. Pierre during the first sitting of the Thirteenth Session of Parliament on December 16, 2025, and received unanimous support in the House of Assembly. The decision clears the way for a one-day suspension of VAT on eligible items sold by participating businesses.
Saint Lucia’s standard VAT rate is 12.5 per cent. On the VAT-Free Day, registered retailers will be required to pass on the full savings to consumers by offering eligible goods at prices reduced by at least that amount.
According to the government, the initiative is intended to provide direct financial relief to households during the Christmas season, while also stimulating economic activity. The VAT-Free Day is expected to drive increased foot traffic and boost sales for retailers during what is typically a peak period for commercial activity.
Participation in the initiative is voluntary. Businesses wishing to take part must register in advance with the Inland Revenue Department (IRD). Retailers that do not register will continue to charge VAT as usual and remit the tax to the State in accordance with existing legislation.
The government has welcomed the cooperation of the private sector, describing the VAT-Free Day as a measure aimed at balancing immediate consumer savings with broader economic benefits for businesses and the national economy.
