Type: Legislation
Effective Date: To Be Determined
Dominica is considering a 1% or 2% VAT increase to help fund a reduction or elimination of income tax while maintaining the 10% VAT rate on hotel accommodations. Prime Minister Roosevelt Skerrit also aims to lower corporate income tax and shift towards a consumption-based tax system. Essential goods and services, including medical care, financial services, education, and basic food supplies, will remain VAT-exempt. Dominica’s VAT system, introduced in 2006, is a key revenue source administered by the Inland Revenue Division, requiring businesses to register and comply with tax obligations. The government continues to update VAT policies to improve efficiency, prevent tax evasion, and balance economic growth with revenue collection.
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