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About Us

The Tax Reform Unit was established in January 2009 with the responsibility for the management of the Tax Reform and Modernization Programme for the Federation of St. Christopher & Nevis.

The Tax Reform Unit activities are primarily focused on the following:

  • Managing the implementation of the re-designed tax system
  • Tax legislative analysis and simplification
  • Organisational structures re-design
  • The provision of training and capacity building in tax administration departments
  • The provision of technical assistance in the reform process
  • Re-engineering of tax administration business processes and procedures
  • The re-tooling of the tax administration departments to enhance their E-Readiness & E-Governance
  • Advocating the incorporation of technology solutions into the tax compliance process of businesses
  • Soliciting and incorporating stakeholders’ recommendations in the re-design of the tax system to attain fairness, progressivity and stimulate business development

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Tax Tips

Special Input tax rule for supplies at 10%

A taxpayer whose taxable activities include the provision of accommodation and restaurant services, subject to the reduced VAT rate of 10%, is not allowed to deduct in any given tax period, any input tax that exceeds its output tax both of which resulted from this reduced rate taxable activity.

Eg. A taxpayer who operates a guest house or a restaurant and calculates output tax for a particular tax period of $50,000 and allowable input tax for that period of $55,000, is not allowed to deduct $55,000. He/she must only deduct up to $50,000 although he incurred $55,000 in that period.

NB: This taxpayer must never carry forward a credit to the subsequent tax period.