Cabinet approves VAT-Free Day for 28 August 

Vincentians will be able to purchase selected essential items without paying Value Added Tax on Friday, 28 August, as the Government rolls out its second VAT-Free Day aimed at easing household expenses ahead of the new school year.

By Admin. Updated 4:27 a.m., Thursday, July 30, 2026, Atlantic Standard Time (GMT-4). 

Cabinet has approved Friday, 28 August 2026, as a one-day VAT-Free Day, allowing consumers to purchase selected essential items without paying Value Added Tax (VAT).

The Inland Revenue Department (IRD) announced the measure on Thursday, saying the tax exemption will apply to qualifying toiletries, school supplies, groceries and non-alcoholic beverages.

The initiative comes as families prepare for the start of the new school year and is expected to provide some relief from rising household expenses while encouraging increased activity within the retail sector.

All VAT-registered businesses will be required to suspend the collection of VAT on qualifying items for the duration of the day. The IRD said additional guidance, including a comprehensive list of eligible products, will be issued before the initiative takes effect to assist both businesses and consumers.

The department is also encouraging shoppers to retain their receipts and report any instances where VAT is charged on qualifying items.

The August initiative follows the country’s first VAT-Free Day, which was held on 19 December 2025 after being announced by Prime Minister and Minister of Finance, Legal Affairs & Justice, Economic Planning, and Private Sector Development, Dr Godwin Friday, shortly after his administration assumed office.

That inaugural VAT-Free Day fulfilled a key election pledge by the Government and was introduced to provide financial relief to households during the Christmas season while stimulating spending across the local economy. Retailers reported heightened customer activity as Vincentians took advantage of reduced prices on eligible goods.

With the latest VAT-Free Day scheduled just before the reopening of schools, many families are expected to use the opportunity to purchase back-to-school supplies and other household essentials at lower cost.

The Inland Revenue Department said further details, including the full list of qualifying items and implementation guidelines for businesses, will be released in the coming weeks.

Consumers seeking additional information may contact the IRD at 784-456-6099 or 784-457-1493, or email [email protected].

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