Tourism Sector Reminded to File and Pay New Levies
*Please note edits were made to the below information in February 2019*
August 20, 2018
(Bridgetown, September 2018) The Barbados Revenue Authority (BRA) is reminding all tourism sector practitioners who provide holiday accommodation to visitors and locals alike, that they are required to charge a Room Rate Levy or Shared Economy Levy to their guests and likewise, all persons who provide direct tourism services are required to apply a Product Development Levy to the cost of those services.
The Room Rate and Product Development levies have both took effect from July 1, 2018, while the Shared Economy Levy is in effect from October 1, 2018.
This reminder is coming from BRA Communications Officer, Erica Lazare regarding the filing and payment of these levies to the Authority, which were introduced following the Budgetary Proposals and Financial Statement by Prime Minister Mia Mottley in June.
Lazare explained that tourism business owners are therefore required to register in the BRA’s new Tax Administration Management Information System (TAMIS) and ensure they choose the VAT obligation in order to remit the levies via this new online portal at https://tamis.bra.gov.bb.
Persons are advised that the Product Development Levy is to be charged at a flat rate of 2.5%. However, the Room Rate Levy should be applied to the following properties at the rates specified:
- Guest houses and apartments at BDS $5.00 per room per night; and
- Vacation rental properties and villas at 2.5% of the nightly rate. However, where that amount exceeds BDS $20.00 per night, the rate to be charged is BDS $20.00 per bedroom per night.
However, hotels should apply the levy at the following rates:
- BDS $5.00 per room per night for “B” Class properties;
- BDS $11.00 per room per night for “A” Class properties; and
- BDS $20.00 per room per night for Luxury properties.
Please note that the levies are required to be reported at line 370 or 380 of the Value Added Tax (VAT) return and paid to the BRA every two months by the 21st day of the following month.
“We know uncertainty can be present with new tax measures and sought to ensure that tourism practitioners were provided with the necessary information for the levies, through liaising with our sector stakeholders such as the Barbados Hotel & Tourism Association and the Barbados Tourism Product Authority, who were able to share levy filing requirements directly with their members,” she stated.
She added that the Policy Notes issued for the levies have been amended and are also available via the BRA’s website bra.gov.bb and social media pages, along with a schedule which, in addition to assisting persons in calculating their levy amounts, is to be completed and uploaded when filing these VAT returns.
For more information and directions on how to file and pay, please download and view the Policy Notes below:
*SCHEDULE HAS BEEN UPDATED TO ACCOMMODATE EARLIER VERSIONS OF EXCEL*