VALUE ADDED TAX (VAT) on foreign online transactions will not start this Saturday as scheduled – the third time the commencement date has been deferred.
The delay this time is due to Government’s urgent need to meet the December 31 deadline to pass legislation for the convergence of local and international tax rates to bring them in line with the Organisation for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative, or incur severe sanctions.
A Ministry of Finance official confirmed yesterday that given its importance to Barbados’ viability, the OECD matter had superseded Government’s proposal to apply the VAT on foreign online transactions measure.
So pressing was the OECD issue that debate started two days ago in the House of Assembly with the first reading of 11 bills to effect the change. Tomorrow, the House will engage in what is termed a cognate debate, where the 11 bills will be discussed at the same time, but each passed individually. The Senate will debate the measure next Wednesday. (SP)
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