Consumers to Benefit From Extra Back-to-School Discounted VAT Day

The Government of St. Kitts and Nevis has confirmed an additional back-to-school discounted VAT day, tomorrow, 23rd August, 2025, following the disruption caused by Hurricane Erin. The stormy conditions earlier this month limited shoppers’ ability to benefit fully from the previously scheduled event.

On the upcoming day, the Value Added Tax (VAT) on eligible goods will be reduced from the standard 17 per cent to 5 per cent, offering households across the Federation the chance to make substantial savings as they prepare for the new academic year. The Inland Revenue Department (IRD) has stressed that the 5 per cent VAT rate applies only to tangible goods that are in stock and delivered on the day. Pre-orders and items not immediately available will not qualify.

As part of regulatory compliance and public safety measures, several items remain excluded from the reduction. These include firearms, ammunition, cigarettes, tobacco products, alcoholic beverages such as rum, vodka, beer, and wine, as well as motor vehicles.

In addition to the discounted VAT day, families continue to benefit from the government’s extended 0 per cent VAT policy on essential school supplies, which runs from 1st July to 30th September, 2025. The comprehensive list includes exercise books, textbooks, geometry sets, rulers, T-squares, uniforms and uniform cloth, school bags, pens, pencils, crayons, markers, erasers, correction fluid, paints, glue sticks, dictionaries, calculators, lunch boxes, binders, and plastic book covers.

The IRD noted that the temporary reduction in VAT from 17 per cent to 13 per cent for the first half of 2025 had already boosted commercial activity and consumer confidence. With the added relief of the back-to-school discounted VAT day and the extended 0 per cent VAT on school supplies, officials believe families will have meaningful financial support during the high-spending back-to-school season.


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