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Trinidad and Tobago VAT Guide 2026

Trinidad and Tobago's Value Added Tax (VAT) is a consumption tax levied at a standard rate of 12.5% on taxable supplies of goods and services. Exports are zero-rated (0%). The registration threshold is TTD 500,000 in annual taxable turnover. VAT is administered by the Board of Inland Revenue (BIR) under the VAT Act, and returns are typically filed quarterly.

Overview — VAT in Trinidad and Tobago

VAT in Trinidad and Tobago is governed by the Value Added Tax Act, Chapter 78:02, and administered by the Board of Inland Revenue (BIR). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports of goods. Trinidad and Tobago follows a credit-invoice VAT system, where registered businesses charge output VAT on their sales and can recover input VAT incurred on business purchases. The standard rate is 12.5%. Certain supplies are exempt from VAT including basic food items, medical services, educational services, financial services, and residential rent. The tax year follows the calendar year, and VAT returns are filed quarterly.

VAT Rates — 12.5% Standard, 0% Zero-Rated

The VAT system in Trinidad and Tobago has three categories of supplies:

  • Standard rate (12.5%) — applies to most goods and services, including retail, hospitality, professional services, telecommunications, and manufactured goods
  • Zero-rated (0%) — exports of goods and services, international transport, and supplies to approved international organisations. Zero-rated supplies allow input VAT recovery
  • Exempt supplies — basic foodstuffs (bread, milk, eggs, fresh produce), medical services, educational services, financial services (insurance, lending), residential property rent, and postal services. Exempt suppliers cannot recover input VAT

Businesses making both taxable and exempt supplies must apportion input VAT recovery based on the proportion of taxable supplies.

Registration Threshold — TTD 500,000

Businesses with annual taxable turnover exceeding TTD 500,000 must register for VAT with the BIR. The threshold is based on turnover in the preceding 12 months. If turnover exceeds the threshold at any point, the business must register within 14 days. Voluntary registration is permitted for businesses below the threshold, particularly those that wish to recover input VAT on business purchases. Non-resident businesses supplying electronic services to consumers in Trinidad and Tobago may also be required to register under the BIR's digital services VAT rules. Penalties for failure to register include fines and potential back-assessment of VAT.

VAT Filing & Payment

VAT-registered businesses must file returns quarterly, within 25 days after the end of each quarter (March, June, September, December). Filing is done electronically through the BIR's eTAC (Electronic Tax Administration and Compliance) system. The VAT return shows output VAT charged on sales, input VAT incurred on purchases, and the net amount payable (or refundable). Payment is due at the time of filing. Late filing attracts a penalty of 10% of the tax due plus interest at the prescribed rate. The BIR conducts VAT audits and may perform compliance visits to verify records and transactions.

Green Fund Levy

In addition to VAT, businesses subject to corporation tax must pay a Green Fund Levy at 0.1% of gross sales or receipts. This levy is separate from VAT but shares the same reporting framework. The Green Fund Levy is deductible for corporation tax purposes. The levy applies to all businesses registered for VAT or corporation tax, with no minimum threshold. Revenue from the Green Fund Levy is used to finance environmental and conservation projects in Trinidad and Tobago.

FAQs

Do I need to charge VAT if my turnover is below TTD 500,000?

No, registration is only compulsory if annual turnover meets or exceeds TTD 500,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge VAT on their invoices.

Can I recover input VAT on business purchases?

Yes, VAT-registered businesses can claim input VAT on purchases used for taxable supplies. Input VAT is netted against output VAT in the quarterly return. Input VAT on exempt supplies cannot be recovered.

What is the penalty for late VAT filing?

Late filing attracts a penalty of 10% of the VAT due plus interest at the prescribed rate (currently approximately 1% per month). Persistent non-compliance may result in legal action by the BIR.

Disclaimer

This guide provides general information about Trinidad and Tobago VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Trinidad and Tobago tax advisor or the Board of Inland Revenue for advice specific to your situation. InvestmentKit does not provide tax advice.