All tourism sector practitioners who provide tourist accommodation to visitors and locals are required to charge a Room Rate Levy to their guests, and all persons who provide direct tourism services are required to apply a Product Development Levy to the cost of those services.
This reminder comes from the Barbados Revenue Authority (BRA) Communications Officer, Erica Lazare, regarding the filing and payment of these levies to the Authority, which were introduced following the Budgetary Proposals and Financial Statement by Prime Minister Mia Amor Mottley in June.
Ms. Lazare explained that tourism business owners should register in BRA’s new Tax Administration Management Information System (TAMIS) in order to remit the levies via this new online portal at https://tamis.bra.gov.bb.
Persons are advised that the Product Development Levy is to be charged at a flat rate of 2.5%. The Room Rate Levy should be applied to the following properties at the rates specified:
- Guest houses and apartments at BDS $5.00 per room per night; and
- Vacation rental properties and villas at 2.5% of the nightly rate. However, where that amount exceeds BDS $20.00 per night, the rate to be charged is BDS $20.00 per bedroom per night.
However, hotels should apply the levy at the following rates:
- BDS $5.00 per room per night for “B” Class properties;
- BDS $11.00 per room per night for “A” Class properties; and
- BDS $20.00 per room per night for Luxury properties.
These levies should be reported at line 180 of the Value Added Tax (VAT) return and paid to the BRA every two months by the 21st day of the following month.
“We know uncertainty can be present with new tax measures and sought to ensure that tourism practitioners were provided with the necessary information for the levies, through liaising with our sector stakeholders such as the Barbados Hotel & Tourism Association and the Barbados Tourism Product Authority, who were able to share levy filing requirements directly with their members,” Ms. Lazare stated.
She added that the Policy Notes issued for the levies have been amended and are also available via BRA’s website bra.gov.bb and social media pages, along with a schedule, which, in addition to assisting persons in calculating their levy amounts, is to be completed and uploaded when filing these VAT returns.