Shared Economy Levy Goes into Immediate Effect

Last year Barbados’ Prime Minister, The Right Honourable Mia Amor Mottley, proposed a revenue generating Levy on all tourist accommodation and services. This was set at 2.5% for holiday rental accommodation, but capped at US$10/bedroom/night.

We have just been advised that for all properties (villas, apartments, condos) who are NOT VAT (Value Added Tax) registered will now carry a 10% Shared Economy Levy, with immediate effect. This does not affect existing bookings; it applies to NEW bookings only.

For those properties who ARE VAT registered, the 7.5% VAT applies plus the original 2.5% Room Rate Levy (capped at US$10/bedroom/night.

It is also our understanding that effective January 1st 2020 the VAT will increase to 15%. For those properties who are not VAT registered the 10% Shared Economy Levy still applies. For those properties who are VAT registered, the VAT rate will be 15% and we understand the 2.5% Room Rate Levy no longer applies.

As we receive updates from the Barbados Revenue Authority we will update this page.

March 8th 2019