BASSETERRE, St. Kitts – PRIME MINISTER and Finance Minister of St. Kitts and Nevis Dr. the Hon. Denzil Douglas reiterated that Value Added Tax (VAT) would be implemented on November 1, 2010 at 17 percent.
He declared that the government would provide technical support to registered businesses that might encounter difficulty in making the necessary changes to their accounting and financial programmes to accommodate the VAT.
Dr. Douglas was at the time explaining the reason for the implementation of the new tax system during the debate of the VAT Bill in the National Assembly on Friday, August 6.
In addition to listing the items and services that would not be affected by the VAT, Douglas said, “Each registered business will be assigned to a member of the professional staff of the Inland Revenue Department, who will visit the business and give advice as to the changes which are necessary for compliance.
“We are also offering to provide technical support to any business which has difficulty in making the necessary changes to its accounting and financial programmes to accommodate the VAT. But government has undertaken that responsibility to provide you with professional assistance so that the computerised system can be made VAT ready. We will pay for that service because we believe it is our responsibility.”
Dr. Douglas also declared that prior to the introduction of the VAT, businesses would have to undergo and comply with a transition process that would be administered by the Customs Department.
“For at least one month, via to the introduction of the VAT, businesses will be allowed to arrange bonded facilities and other measures with the Comptroller of Customs, whereby they will pay only the Duty and Customs Service Charge on imports. After the VAT is implemented on November 1, 2010, the businesses will be required to report to the Customs, with respect to these bonded goods, those which were sold under the Consumption Tax system and which were sold under the VAT. At that time, the applicable tax will be collected, based on when these goods were sold.
Dr. Douglas noted that this system is necessary because “we need accurate records”.
