RE: Government of Barbados amendments to VAT and Room Rate Levy
Tuesday, March 26, 2019
On Wednesday, January 1, 2020, the Government of Barbados will introduce an increase in VAT on the accommodation sector from 7.5% to 10%. These measures will be implemented as we work to maintain the high quality destination experience for which Barbados is known and loved.
In addition to the increase in the VAT the Government has also informed that the Room Rate Levy will be increased effective April 1, 2019 as follows:
● Apartment from US $2.50 to $4.38 per bedroom per night.
● Guest House from US $2.50 to $4.38 per bedroom per night.
● Hotel “B” Class from US $2.50 to $4.38 per bedroom per night.
● Hotel “A” Class from US $5.50 to $9.63 per bedroom per night.
● Hotel Luxury class from US $10.00 to $17.50 per bedroom per night.
● Villas from 2.5% to 3.75% of the nightly rate per bedroom; capped at US$17.50 per bedroom, per night
These announcements were made by the Hon. Mia Mottley, Q.C., M.P., Prime Minister and Minister of Finance, Economic Affairs and Investment on Wednesday March 20, 2019 during her Budget presentation. In her Mini Budget on June 11, 2018 Prime Minister Mottley informed that it was her Government’s intention to increase the VAT from 7.5% to 15% effective January 1, 2020 and to remove the Room Rate Levy at that date as well. This new policy announcement is as a result of discussions between officials of the Government of Barbados and the tourism sector and will result in the revised Room Rate Levy continuing.
We are grateful to you, our partners, for working with us through these adjustments to our vital tourism industry. They serve as one aspect of a wider plan to enhance and improve destination Barbados’ position within the competitive global market. We understand the implications for your business and our Directors will be on hand throughout the transition to assist in a smooth implementation.
Thank you for your continued support of destination Barbados and we look forward to many more years of working with you.
On May 24, 2018, the people of Barbados elected a new Government. The new administration has embarked on a bold, progressive, and assertive program to renew our country’s social and economic fortunes and to further enhance Barbados’ presence as one of the top tourism destinations in the world, as we move towards full development.
The Government of Barbados is seeking to improve its national infrastructure to maintain its competitiveness as a destination for the benefit of all partners and stakeholders. All Barbadians, those who love Barbados, and those that are key partners in the country’s development, have been called upon to play a part in this social and economic restoration.
As an integral component of this strategy, on Monday, June 11, 2018, the Government of Barbados tabled a new national budget in the country’s Parliament. This budget has as its primary aim the raising of additional revenues that will be directed to making the type of overall national improvements that will lead to creating the most satisfactory and functional society for Barbadians and visitors alike.
The Tourism and Hospitality sector, our lead economic earning industry has understandably been called upon to lead the charge of rebuilding the social and economic fortunes of the country. As such, the Government has advised that effective July 1, 2018, a mandatory ‘Room Rate Levy’ will be applied nightly to all registered hotel bills in the following amounts, based on the rating/ranking attributed to them by the Barbados Hotel and Tourism Association (BHTA):
- LUXURY HOTELS – US $10.00 per room per night
- A CLASS HOTELS – US $5.50 per room per night
- B CLASS & APARTMENT HOTELS – US $2.50 per room per night
- VILLAS – 2.5% of the rate charged per bedroom, per night; capped at $10 US per bedroom, per night
Royal Glitter Bay Villas is rated as a Vacation Rental Property (Villa) Member. The total levy will be paid in resort by the guest upon arrival in similar fashion as all resort fees are paid either in cash or by credit card. The Room Levy fee will be charged to all guests from July 1, 2018. This levy also applies to any guests who check-in prior to July 1, 2018 but stay in resort after July 1, 2018.
Thank you for your continued support of Barbados and for your assistance in facilitating the implementation of this initiative.