
Minister in the Ministry of Finance, Ryan Straughn.
According to one Government official, Barbadians will not be double taxed when the value added tax (VAT) on online transactions comes into full effect.
This assurance came from Minister in the Ministry of Finance, Ryan Straughn, as he spoke with media on the sidelines of the Kooyman opening Thursday night.
Earlier this week, Amazon Web Services announced that they would be collecting VAT on behalf of the Government, which left Barbadians confused and upset, however the Minister took the time to bring some clarity to the situation.
Straughn explained that in November last year, Amazon registered with the Revenue Authority and went through the process of sensitisaton of the digital services provided in Barbados.
“What I want to say to Barbadians, is that right now when you purchase materials on Amazon you pay certain state taxes depending on where the goods are coming from and therefore once we get that specific regime in place you won’t be paying the state tax, which obviously is helping to support roads and services in those states or wherever Amazon operates,” he said.
“But the point is that the persons will not be taxed twice simply because you would not pay the domestic sales tax or whatever tax is there but you will pay the tax in Barbados and that would be used to support the infrastructure in place in Barbados.
“While I understand that persons are concerned by increased taxation, the truth is that you’re already paying taxes in the states that those goods are coming from and therefore all we want to do is ensure that we are collecting the revenue that really and truly helps to support the public services in Barbados.”
The Minister said that this was really a case of “where do you want to pay taxes” and he believed it was important to stress that people were not going to be taxed twice, and part of the reason the Government decided to go this route was to ensure that once goods came to Barbados’ borders, then all of the necessary information is shared one time and when they go through the customs process then everything is clean with respect to the data, which would allow for the avoidance of double taxation.
He stated that this was already in place, but was being regularised.