The Government of St. Kitts and Nevis has announced significant tax relief measures to ease the financial burden on families preparing for the upcoming academic year. This includes the return of the popular Discounted VAT Rate Days on Friday, 15th and Saturday, 16th August 2025, during which the standard 17% Value Added Tax (VAT) on eligible goods will be reduced to 5%. This temporary reduction provides families with an excellent opportunity to save on essential purchases for the new school term.
The Inland Revenue Department (IRD) clarified that the 5% VAT applies strictly to tangible goods that are in stock and delivered on the VAT Discount Days, excluding pre-orders or items not immediately available. Certain products remain excluded from the VAT relief for safety and regulatory reasons, including firearms, ammunition, tobacco products, alcoholic beverages, and vehicles.
In addition, the Government has extended a 0% VAT rate on a wide range of essential school supplies from 1st July through 30th September 2025. This longer tax break is designed to offer families further financial relief during the critical back-to-school period. Eligible items include exercise books, textbooks, geometry sets, rulers, school uniforms and cloth for uniforms, school bags, writing instruments, art supplies, calculators, lunch boxes, and protective covers, among others.
Businesses wishing to participate in the Discounted VAT Rate Days are required submit applications downloaded from www.sknird.com or collected at IRD offices in Basseterre or Charlestown. The list of approved businesses will be published on the IRD website by 15th August, and participating retailers are required to submit their VAT Day Sales Report by 1st September 2025. For those selling school supplies at the 0% VAT rate, concession sales schedules should accompany the VAT Return for the respective tax period.
These measures demonstrate the Government’s commitment to supporting families and businesses in St. Kitts and Nevis as they prepare for a successful and affordable new school year.
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