INLAND REVENUE DEPARTMENT CONFIRMS RETURN OF VAT RATE TO 17% EFFECTIVE JULY 01, 2025

BASSETERRE, ST. KITTS, JUNE 30, 2025 – The Inland Revenue Department (IRD), on behalf of the Government of St. Kitts and Nevis, wishes to inform the general public and business community that the Value Added Tax (VAT) rate will revert to 17% effective July 1, 2025, following the expiration of the temporary reduced rate of 13%.

This adjustment aligns with the policy measures outlined in the Hon. Prime Minister and Minister of Finance’s 2025 Budget Address, which introduced the reduced VAT rate as part of the Government’s broader economic relief and recovery strategy. The Department is pleased to note that this initiative has had a positive impact on commercial activity and consumer sentiment across the Federation.

The IRD acknowledges the appreciation expressed by the St. Kitts and Nevis Chamber of Industry and Commerce and extends its gratitude for the Chamber’s continued engagement and partnership as we work collectively to strengthen the nation’s economic development.

Guidance for Businesses

All VAT-registered businesses are encouraged to take the necessary steps to update their pricing systems, accounting software, and point-of-sale configurations to reflect the return to the standard VAT rate. The Inland Revenue Department stands ready to provide technical support on key transitional matters, including:

• Adjustments to invoicing and receipts

• Accurate completion of VAT return filings

• Guidance on reconciling transitional accounting periods

Contact for Assistance

Businesses or individuals requiring assistance are invited to contact the Department directly at inlandrevenue@ird.gov.kn or by calling 465-8485, extensions 3600, 3530, 3508, and 3512.

Commitment to Partnership

The IRD remains committed to working collaboratively with the private sector to ensure a smooth transition and to

advance the Federation’s tax policy objectives in a way that promotes growth, equity, and fiscal sustainability.

The Department thanks all stakeholders for their continued cooperation and support.

The Inland Revenue Department, Building our Nation Through Responsible Tax Administration.