Worldwide VAT, GST and Sales Tax Guide
Antigua and Barbuda where it carries on a taxable activity in Antigua and Barbuda and meets the registration requirements as outlined above (i.e., exceeds the registration threshold). Input tax incurred by non-established businesses is not recoverable unless the non-established business is registered for ABST.
Tax representatives. Tax representatives are not required in Antigua and Barbuda. However, a taxable person can voluntarily choose to appoint a tax representative if they wish to do so. In addition, the Commissioner may, by writing, declare a person to be a representative of another person for the purpose of ABST.
Reverse charge. The reverse-charge mechanism applies in Antigua and Barbuda. Where a resident taxable person in Antigua and Barbuda receives a supply of services from a nonresident taxable person (i.e., a business-to-business [B2B] supply), ABST maybe payable by the recipient of such services. This occurs where the supply of services would have been taxable in Antigua and Barbuda had they been performed there, they are utilized or consumed there and the recipient uses the services to make exempt supplies, for private or domestic use, or to provide entertainment other than in the course of a taxable supply of entertainment.
Domestic reverse charge. There are no domestic reverse charges in Antigua and Barbuda.
Digital economy. There are no specific rules relating to the taxation of the digital economy. In practice, nonresident providers of electronically supplied services for B2B and business-to-consumer (B2C) supplies would be required to register and account for ABST in Antigua and Barbuda. This only applies to services that are physical performed or used in Antigua and Barbuda.
There are no other specific e-commerce rules for imported goods in Antigua and Barbuda.
Online marketplaces and platforms. No special rules exist for online marketplaces and platforms in Antigua and Barbuda.
Registration procedures. Taxable persons are required to register by paper or email to irdtaxpayerservices@ab.gov.ag with the Antigua and Barbuda Inland Revenue Department (IRD) and are required to provide the incorporation documents of the person being registered. Registration with the Inland Revenue Department is required prior to completing ABST registration. If submitting the ABST registration application by paper, the application must be sent to the following address:
Woods Centre
Friars Hill Road
St. John’s
Antigua, W.I.
Deregistration. A taxable person must deregister when they cease to make taxable supplies and must notify the Commissioner in writing of such cessation within 15 days of the cessation. The taxable person will be deregistered, subject to minimum registration period of two years, with effect from the date set out in the notice of cancellation.
Changes to ABST registration details. A taxable person must notify the Commissioner in writing, within 14 days of any change in the name, address, place of business or nature of the taxable activity of the taxable person.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of ABST, including the zero rate.
The ABST rates are:
• Standard rate: 17% (with effect from 1 January 2024)
• Zero-rate: 0%
The standard rate of ABST applies to all supplies of goods and services unless a specific measure provides for the reduced rate, zero rate or an exemption.
The standard rate of ABST increased from 15% to 17% with effect from 1 January 2024. The reduced rate of 14% was removed with effect from 1 January 2024.
Examples of goods and services taxable at 0%
• Exported goods and services
• Supply or import of food for human consumption (as specified in the ABST regulations)
• Supply of electricity provided to residential premises for domestic use (or in any other case, as provided in the ABST regulations)
• Supply or import of water
• Supply or import of fuel, as defined under the following Customs tariff headings:
–
2710.10 Motor spirit (gasoline) and other light oils and preparations
2710.20 Kerosene and other medium oils (not including gas oils)
– 2710.30 Gas oils
– 2710.40 Fuel oils, not elsewhere specified or included
2711.00 Petroleum gases and other gaseous hydrocarbons
The term “exempt supplies” refers to supplies of goods and services that are not liable to ABST and that do not qualify for input tax deduction.
• Financial services
Examples of exempt supplies of goods and services
• Supply of goods to taxable persons if used solely in connection with making exempt supplies, unless the supply is made to a registered person
• International transport services, including international mail services provided by the General Post Office
• Domestic postal services by the General Post Office
• Sale of real property relating to residential premises (“real property” includes an estate, interest, easement, or right, whether equitable or legal, in, to, or out of land, including anything attached to land or things permanently fastened to anything attached to land)
• Lease, license, hire or other form of supply of the right to occupy or be accommodated in residential premises
• Supplies relating to land
• Residential accommodation to an individual for a continuous period of more than 45 days
• Transportation of passengers by land, sea or air within Antigua and Barbuda
• Education services
• Medical, dental, nursing, convalescent, rehabilitation, midwifery, paramedical, optical or other similar services in particular circumstances
• Services in a nursing home or residential care facility
• Prescription medicines
• Veterinary services
• Supply of gambling conducted by a nonprofit association approved by the Minister
• Supply of unimproved land or of land to be used for agricultural purposes
• Supply of unprocessed agricultural products
• Supply of live animals or insects, other than domesticated animals generally held as pets
• Local entertainment services
Option to tax for exempt supplies. The option to tax exempt supplies is not available in Antigua and Barbuda.
E. Time of supply
In general, the time of supply for goods and services supplied by a taxable person is the earlier of the following events:
• The date of issuance of the invoice by the supplier
• The date on which any consideration is received for the supply
Deposits and prepayments. There are no special time of supply rules in Antigua and Barbuda for deposits and prepayments. As such, the general time of supply rules apply (as outlined above).
Continuous supplies of services. Where a progressive or periodic supply is treated as a series of separate supplies made successively, each successive supply is treated as being made on the earliest of the following events:
• The date on which an invoice for the progressive or periodic payment corresponding to the supply is issued by the supplier, but only if a separate invoice is issued for each such supply.
• The date on which the progressive or periodic payment corresponding to the supply is due.
• The date on which any of the progressive or periodic payment corresponding to the supply is received.
• The first day of the period, if any, to which the progressive or periodic payment relates.
• The first day on which the recipient is able to commence use or enjoyment of the successive part of the actual supply which corresponds to the supply.
Goods sent on approval for sale or return. There are no special time of supply rules in Antigua and Barbuda for supplies of goods sent on approval for sale or return. As such, the general time of supply rules apply (as outlined above).
Reverse-charge services. There are no special time of supply rules in Antigua and Barbuda for supplies of reverse-charge services. As such, the general time of supply rules apply (as outlined above).
Leased assets. If payment for the leased goods is made progressively or periodically, the time of supply rules applicable to continuous supplies of services should be applied (as outlined above). In any other case, the general time of supply rules apply.
Imported goods. ABST is payable on the importation of goods other than an exempt import. ABST on the entry of imported goods becomes due and payable at the time when the goods are entered for the purposes of the Customs (control and management) Act and is payable by the importer.
F. Recovery of ABST by taxable persons
The ABST paid by a taxable person is recoverable as input tax if it relates to goods and services acquired for the purposes of making taxable supplies. Input tax is recovered by offsetting it against output tax (that is, tax charged on supplies made) in the ABST return for each ABST period.
Any refunds arising from the above may be carried forward and offset against any net VAT tax payable in a subsequent tax period. Refunds can be carried forward for a maximum of six consecutive tax periods after the tax period in which entitlement to the refund arose. Any amount that has not been credited after those six months, on application in the form and manner prescribed by the Commissioner, can be refunded to the person within three calendar months after the application date.
The time limit for a taxable person to reclaim input tax in Antigua and Barbuda is three years. This is from the date the taxable person has the right to apply for the refund.
Nondeductible input tax. Input tax may not be recovered on purchases of goods and services that are not used for taxable or business purposes.
Examples of items for which input tax is nondeductible
• Personal passenger vehicles, spare parts, repair and maintenance services
• Personal or private entertainment
• Membership in recreational associations or clubs
• Domestic or private acquisitions and imports
Examples of items for which input tax is deductible (if related to taxable business use)
• Entertainment, not supplied to related persons or employees
• Passenger vehicles, spare parts, repair and maintenance services
• Acquisitions and imports
Partial exemption. If all supplies made by a taxable person during a tax period are taxable supplies (i.e., standard-rated, reduced-rated and zero-rated supplies), the input tax incurred in the period is deductible in full. However, if some, but not all, of the supplies made by the person during the tax period are taxable supplies, a partial recovery calculation may be required. This means that a partial recovery calculation is required where costs incurred relate to both taxable and exempt supplies. The ABST Act provides a standard method of apportionment to calculate the amount of input tax the taxable person is entitled to claim. The standard method of apportionment is calculated as A x B/C, where A, B and C represent the following:
A = The total amount of the input tax payable in respect of acquisitions and imports made by the taxable person during the period, less the sum of the input tax attributable to acquisitions or imports acquired or made, which are directly allocable to the making of taxable supplies, and in respect of deductions which are disallowed under the ABST Act.
B = The total amount of taxable supplies made by the taxable person during the period.
C = The value of all supplies made by the taxable person during the period.
C does not include the value of supplies made through a taxable activity carried on by the taxable person outside Antigua and Barbuda. This covers foreign operations carried on by the entity outside of Antigua and Barbuda such as branch operations.
A taxable person may, where the fraction B/C is more than 0.90, deduct the total amount of the input tax on the supplies/imports acquired or made during the period. A taxable person may not, where the fraction B/C is less than 0.10, claim input tax deduction on taxable supplies made during the period.
The above standard method does not apply to financial institutions making both taxable and exempt supplies during a tax period. Instead, the amount of the input tax claimed by a financial institution is calculated as A x B/C, where A, B and C represent the following:
A = The total amount of input tax payable in respect of taxable acquisitions or imports made in the preceding calendar year valued at XCD100,000 or more.
B = The value of all taxable supplies made by the taxable person during the preceding two calendar years.
C = The value of all supplies made by the taxable person during the preceding two calendar years, other than supplies made through a taxable activity carried on by the person outside Antigua and Barbuda.
Capital goods. In Antigua and Barbuda, capital goods (known as capital assets) are defined as an asset, whether tangible or intangible, acquired by a person for use in the person’s taxable activity but does not include:
• Consumables or raw materials
Or
• An asset acquired for the principal purpose of resale in the ordinary course of carrying on the person’s taxable activity, whether or not the asset is to be sold in the form or state in which it was acquired
In Antigua and Barbuda there are no special input tax recovery rules for capital assets. The normal rules outlined above apply. Where a capital asset is used to make both taxable and exempt supplies, the taxable person is required to apportion the input tax according to the partial exemption formula outlined above. However, a taxable person must make an adjustment to the initial input tax credits claimed if the actual use of a capital asset does not match the initial intended use of the capital asset and the difference between the actual and intended use was greater than 10% of the total actual use of those goods or services.
Refunds. A refund arises when the total input tax credits allowed in the tax period exceed the total output tax payable for that tax period. The difference will be carried forward to the next month’s return and will be treated as a deductible input tax credit for that tax period. Further excesses will be carried forward consecutively for six consecutive months. If after six months there is an excess credit of XCD100 or more, the taxable person may then apply for a refund. If the excess credit does not exceed XCD100, it is carried forward and used as input tax creditable in that period.
Pre-registration costs. Input tax incurred on pre-registration costs in Antigua and Barbuda is not recoverable.
Bad debts. Output tax accounted for on supplies that do not get paid by the recipient (i.e., bad debts) can be recovered in Antigua and Barbuda. A taxable person is allowed to claim bad debt relief for tax paid in respect of a taxable supply made by the taxable person where the whole or part of the consideration for the supply is subsequently treated as a bad debt.
Noneconomic activities. Input tax incurred on purchases that are used for noneconomic activities is not recoverable in Antigua and Barbuda.
G. Recovery of ABST by non-established businesses
Input tax incurred by non-established businesses that are not registered for ABST in Antigua and Barbuda is not recoverable.
H. Invoicing
ABST invoices. A taxable person making a taxable supply to a registered recipient (i.e., a B2B supply) is required to issue the recipient with a full ABST invoice at the time of the supply. An ABST invoice is necessary to support a claim for input tax recovery.
Credit notes. A credit note, or debit note must be issued when the quantity or consideration shown on a tax invoice is altered. Credit and debit notes must contain broadly the same information as a tax invoice.
Electronic invoicing. Electronic invoicing is allowed in Antigua and Barbuda, but not mandatory.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is allowed but not mandatory in Antigua and Barbuda. There is no threshold beyond which taxable persons are required to adopt electronic invoicing in Antigua and Barbuda. The requirements related to electronic invoicing are the same as those for paper invoicing.
However, there are no provisions in the law for electronic invoicing in Antigua and Barbuda. In practice, standard paper invoicing is preferred, but electronic invoicing may be accepted.
Simplified ABST invoices. A taxable person making a taxable supply to a registered recipient (i.e., a B2B supply) is authorized to issue a sales receipt in lieu of a full ABST invoice, if the consideration for the taxable supply is in cash and does not exceed XCD50.
A taxable person making a taxable supply to an unregistered recipient (i.e., a B2C supply) is prohibited from issuing a full ABST invoice but instead must issue a sales receipt to the recipient.
A taxable person who uses a false TIN, issues a false ABST invoice, credit note, debit note or provides these documents in a manner that is contrary to the requirements of legislation commits an offense and is liable on conviction to a fine not exceeding XCD25,000 or to imprisonment for a term not exceeding two years.
Personal liability for company officers. Where an offense has been committed by a company, every person who at the time of the commission of the offense was a director or other similar officer of the company or was acting in or purporting to act in such capacity is deemed to have committed the offense. The officer would be subject to the corresponding penalty for the offense.
Officers will not face liability if the offense was committed without their knowledge, and they exercised all such diligence to prevent the commission of the offense as ought to have been exercised in the circumstances.
Statute of limitations. The statute of limitations in Antigua and Barbuda is three years. The start date for the tax authorities to assess an administrative penalty or institute criminal proceedings vary and are as follows:
• If the facts giving rise to the administrative penalty or the offense involve the doing of an act, within three years after the doing of the act.
• If the facts giving rise to the administrative penalty or the offense involve the failure to do an act, within three years after the Commissioner becomes aware of the failure.
• If the facts giving rise to the administrative penalty or the offense involve the nondisclosure or incorrect disclosure of information relating to ABST liability for a tax period, within three years after the correct ABST liability has become final for that tax period.