The Inland Revenue Department (IRD) has issued official consumer guidelines outlining which goods will qualify for exemption during Saint Lucia’s upcoming VAT-Free Day, aimed at helping shoppers and businesses prepare ahead of the highly anticipated shopping event.
According to the IRD, a wide range of everyday consumer goods will be eligible for purchase without Value Added Tax on the VAT-Free Day. These include consumer items, groceries, hire-purchase items, clothing and footwear, building materials, automotive parts, cosmetics and toiletries, as well as general merchandise.
The department clarified that all eligible goods must be available for sale and issued or delivered to customers on the VAT-Free Day itself in order to qualify for the VAT exemption. Only goods purchased domestically are eligible under the initiative, meaning VAT will still apply to goods at the point of importation through the Customs and Excise Department.
While hire-purchase and credit transactions are permitted, the IRD noted that delivery is not included under these arrangements for VAT-Free Day eligibility.
At the same time, the IRD outlined several non-eligible items that will not benefit from the VAT waiver. These include goods not currently in stock, motor vehicles, firearms and ammunition, tobacco products, and alcoholic beverages. Services that are not ordinarily zero-rated for VAT—such as professional services, rent, phone plans, top-ups, internet and cable services—are also excluded.
Additionally, sales by accommodation providers and other tourism-sector businesses, along with the sale of prepared meals and beverages at hotels, guest houses, restaurants and similar establishments, will not qualify. The importation of services is also excluded from the VAT-Free Day arrangement.
The IRD emphasized that goods already zero-rated or exempt from VAT will remain so, and the VAT-Free Day does not alter their existing tax status.
Consumers and businesses are being encouraged to review the guidelines carefully to avoid confusion and ensure compliance during the VAT-Free Day, which is expected to stimulate commercial activity while easing household spending.
