Barbados VAT / Sales Tax
Detailed vat / sales tax rates and rules for Barbados in 2026.
VAT / Sales TaxBBD
Barbados levies a 17.5% VAT on most goods and services. A reduced rate of 7.5% applies to hotel and tourism accommodations. Basic food items, medicines, and exports are zero-rated. Financial services, education, health, and residential rental are exempt. Bimonthly VAT returns are required.
Standard Rate
17.5%
Registration Threshold
Annual taxable supplies exceeding BBD 200,000
Reduced Rates
7.5% — Hotel and tourism accommodation0% — Basic food items, medicines, educational materials, exports
How Barbados VAT / Sales Tax compares
Barbados’s standard VAT / sales tax rate of 17.5% is the 78th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and North America’s regional average of 10.4%.
Barbados
17.5%
North America average
10.4%
Global average
13.7%
