BASSETERRE, St. Kitts – STAFF training, software installation, a new office space and the passage of appropriation legislation for the introduction of a Value Added Tax (VAT) have now been added to the overall VAT timeline, months ahead of the November deadline.
Despite a late start in the consultation and public awareness process, preparation for the new tax is underway as Prime Minister and Minister of Finance Hon. Dr. Denzil Douglas outlined his government’s plan to ensure the VAT is introduced as seamlessly as possible.
Almost three months into the process, training and other critical organizational changes have begun in the relevant government departments, mainly the Inland Revenue and Customs and Excise Departments.
According to PM Douglas’ detailed VAT blueprint, revealed in part last Friday (Jun. 11) in the National Assembly, additional staff will soon join the Tax Reform Unit. The reformed unit will consist of sections for audit, collection and refund while the Taxpayers Services section within the Inland Revenue Department is expected to be expanded and modernized to specifically address VAT issues.
“We have put in place operational committees and they have been set up in both departments to specifically address VAT implementation issues. Twelve additional auditors are scheduled to join the unit on June 21 of this year, six of whom are from St. Kitts and another six from the sister isle of Nevis,” Douglas revealed in delivering his parliamentary address.
The Tax Reform Unit, as reflected in the PM’s timeline, is expected to commence operations from June 21 in the EC Daniel Building on Cayon Street. Final preparations to the site are being made, but before the unit can be fully able to serve the public, training for staff must be a continuous provision.
“There is a core group of officers from the unit, who have already received training in the management of the VAT system; training is also being provided for the new pool of officers expected to join the Inland Revenue Department to assist in the VAT administration,” he added.
A basic VAT Training Course will be offered to all new staff and will run throughout next week (Jun. 21-26). This will be followed by a VAT Legislative Training Course from July 5-9 and from July 19-30 officers at the Inland Revenue and Customs and Excise Departments can look forward to training in an Advisory Visit Course on VAT.
The fourth training module is the individual VAT Advisory Visits for Businesses, and this is scheduled to commence during the first week of August.
Both Inland Revenue Department offices in St. Kitts and Nevis have commenced work on ensuring that their systems are ready for the administration of VAT. Additionally, an upgraded IT system at the Inland Revenue Department in St. Kitts has been deployed and a similar upgrade is to be launched in Nevis by the end of next month. The software developer is scheduled to commence the installation of the VAT module before the end of August.
As it relates to the VAT draft legislation, which was to be revealed to the public in May 2010, Douglas informed that it is now in its final stages of review and is expected to be released to the public this week. He assured that the legislation would have its first reading by the end of June.
Douglas thanked all stakeholders for lending of their expertise, noting that the way forward should be one of closer collaboration and consultation.
