By Val Matthias. Updated 10:37 a.m., Thursday, December 11, 2025, Atlantic Standard Time (GMT-4).
The Inland Revenue Department has confirmed that Vincentians will benefit from a VAT-Free Shopping Day on December 19, 2025, as part of government’s effort to ease the cost of living ahead of the Christmas season. Controller of Inland Revenue, Mr. Kelvin Pompey, explained that while the initiative is designed to give households some relief, it comes with clear rules to ensure fairness and compliance.
He emphasized that the zero-rating applies only to non-commercial consumers and that businesses purchasing goods for resale will not be eligible. In other words, merchant-to-merchant transactions are excluded, since those are considered commercial in nature.
At the same time, Pompey noted that businesses can still take advantage of the tax holiday if they are buying items for internal use. For example, groceries for a company cafeteria or appliances such as a microwave would qualify, because they are not intended for resale. However, he stressed that services, restaurants, and service charges are excluded from the VAT-free list, meaning that consumers should not expect to benefit from tax relief in those areas. This distinction, he explained, is necessary to keep the focus on household goods and personal purchases rather than commercial activity.
Another important condition is that goods must be in stock and issued on December 19 itself. Pompey warned that consumers cannot pay for items that are unavailable and expect to collect them later, since such transactions would not qualify. The sale must be finalized on the day, and the goods must be physically delivered to the buyer. This requirement, he said, is meant to prevent abuse of the system and to ensure that the relief is immediate and tangible. He encouraged members of the public to plan their shopping in advance and to report any irregularities they encounter during the VAT-free period.
The government’s announcement has already generated significant interest, as this will be the first VAT-Free Day under the current administration. According to local reports, the measure is expected to stimulate consumer spending while offering families some breathing room during the festive season. Pompey concluded by reminding both businesses and consumers that compliance with VAT regulations is mandatory, and that the Inland Revenue Department will be monitoring transactions closely to ensure that the initiative achieves its intended purpose.
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