No VAT on Electric Vehicles

by: - February 13, 2020
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Electric vehicles are officially VAT-free with retroactive effect from September 1st 2019.

In the budget address 2019/2020, the Hon Prime Minister and Minister for Finance, Roosevelt Skerrit announced that Value-Added Tax on electric vehicles would be waived for those who wish to purchase climate-smart means of transportation

Hon Gretta Roberts Minister of Governance, Public Service Reform, Citizen Empowerment, Social Justice and Ecclesiastical Affairs tabled the proposal.

She listed the specific vehicles as electric buses, electric cars and electric motor cycles.

“The 15% VAT is applied to these vehicles and with the approval of these vehicles, the rate of VAT which will be applied is 0%,” Hon Roberts said.

She went on to add, “This measure is aimed at encouraging the use of more environmentally-friendly vehicles.”