Saint Lucian consumers will be able to shop for selected goods without paying Value Added Tax (VAT) on Monday, December 22, 2025, as the country observes its officially designated VAT-Free Day, according to the Inland Revenue Department (IRD).
The IRD said the initiative, which applies a 0% VAT rate to eligible goods sold by participating VAT-registered businesses, is intended to provide financial relief to households while stimulating commercial activity during the peak Christmas shopping period. With the standard VAT rate at 12.5%, consumers are expected to benefit from noticeable reductions on qualifying purchases.
As part of preparations for the initiative, the IRD has released an updated preliminary list of businesses registered to participate in VAT-Free Day. The document, titled “VAT Free Day – December 22, 2025: Preliminary List of Participating Businesses,” identifies businesses by both their registered and trading names and reflects those that have completed the registration process at the time of publication.
Among the businesses listed are Natrapure Water Company Ltd., One St. Lucia Inc., Payless Shoesource (Barbados) SRL Ltd., People’s Discount Pharmacy Ltd., Rainforest Seafoods Inc., RJB Hotel Supplies Inc., Rydym Company Ltd. trading as Fancy Foods, SGD Engineering Inc., St. Lucia Cold Storage Ltd., Taxi Trading Incorporated trading as Taxi Boutique, The Cell (St. Lucia) Ltd., Total Auto Inc., Unicomer (Saint Lucia) Limited, Union Automotive Limited trading as M Motors, and Uptowns Limited. The IRD noted that the list remains preliminary and may be updated as additional registrations are processed ahead of December 22.
The department emphasized that the VAT-Free Day applies strictly to goods and not services, and only to items that are available for immediate sale and delivery on the day. Goods that are not in stock, scheduled for future delivery, or placed on lay-away do not qualify for the VAT exemption. Additionally, only domestically purchased goods are eligible, as VAT paid at the point of importation to Customs and Excise remains unaffected by the initiative.
The IRD further clarified that goods purchased through credit, credit instalment, or hire purchase arrangements may still qualify for the VAT-free rate, once the sale is concluded on VAT-Free Day.
Certain items remain excluded from the initiative, including motor vehicles, firearms and ammunition, tobacco products, and alcoholic beverages such as beer, wine, rum, vodka, brandy, liqueurs, stout and shandy. Services are also excluded, including professional services, restaurant and catering services, rent, lottery and raffle tickets, telecommunications services, and internet and cable services. Sales by accommodation providers and other tourism-sector businesses, including restaurants and bars, are likewise not eligible.
Commenting on the initiative, former Minister for Commerce Emma Hippolyte has advised consumers to take advantage of the reduced prices being offered, while exercising restraint by purchasing only what they need.
The Inland Revenue Department has encouraged both businesses and consumers to familiarize themselves with the guidelines governing VAT-Free Day to ensure compliance and a smooth implementation. Members of the public seeking further information may contact the IRD at 468-4700 or via email at customerservice@ird.gov.lc.
