Barbados: Personal Taxation
There is no capital gains tax in Barbados, nor are there estate, inheritance or gift taxes. Income tax is the main tax. VAT was introduced in 1997 at 15%, and rose to 17.5% on December 1, 2010. It is imposed on a range of goods and services, replacing many old sales taxes.
Finance Minister Chris Sinckler announced the increase in his budget speech in November, 2010. “This increase in the VAT is intended as a temporary measure for the next 18 months. I further propose to review this at the end of one year with a view to providing relief subject to progress in reducing the fiscal deficit,”
The rate of 17.5% was extended indefinitely from June 1, 2012.