Rate of Tax
VAT is charged at the rate of 15% on most goods and services and 10% on hotel accommodation and dive operations. Some goods and services are also charged at the rate of 0%. There is a 20% tax on Cell Phones (talk and text).
To Whom is the Tax Payable?
This tax is payable to the Government of Grenada through the Inland Revenue Division (VAT Office).
VAT Returns and Payments
- A taxable person shall lodge a VAT return for each tax period no later than 20 days after the end of the period.
- A VAT return must –
- be lodged with the Comptroller.
- be in the form prescribed by the Comptroller; and
- contain the information specified in that form.
The Comptroller maycreatean assessment of the VAT payable by a taxable person if –
- the Comptroller is not satisfied as to the accuracy of a VAT return lodged by the person.
- the person fails to lodge a VAT return as required under this Act; or
- the person has been paid a refund or allowed an input tax credit under Section 49 to which the person is not entitled.
VAT payable on Imports
The VAT payable by an importer to the Comptroller of Customs in respect of a taxable import is due and payable at the time of the import.
A person, who fails to pay VAT payable to the Comptroller or the Comptroller of Customs under this Act on or before the due date for payment, is liable to interest on the amount unpaid at the rate of 1.5% per month or part thereof, calculated from the date the payment was due to the date the payment is made.
Offences & Penalties
Many tax penalties are substantial and can dramatically increase a tax bill. Penalties can be assessed for a variety of reasons. Some are due to taxpayer’s negligence/failure to pay attention to tax details. Other penalties are incurred due to the overstatement of deductions, the failure to report before the due date, and or missing or inaccurate information. Taxpayers may also be penalized for intentional acts of fraud.
A person may, by notice in writing to the Comptroller lodge a notice of objection to a reviewable decision, requesting the Comptroller to reconsider his decision and giving reasons for the request. A person who is aggrieved by a decision of the Comptroller under section 106 on an objection against the reviewable decision may, by notice of appeal, appeal from the decision to the Appeal Commissioners.
The Comptroller or the appellant may appeal to the High Court from any decision of the Appeal Commissioners which involves a question of law, including a question of mixed fact and law. A notice of objection or appeal against a reviewable decision does not suspend an obligation to pay –
- any tax chargeable on a return or under an assessment; or
- any penalty imposed under this Act; or
- any interest imposed under this Act,
and the tax, penalty or interest may be recovered as if no such objection or appeal had been lodged.