VAT and Duty-Free Shops

Goods purchased from duty-free shops by non-residents are zero-rated when a retailer holds documentary evidence, collected at the time of the supply, which establishes that goods are to be removed from St. Christopher and Nevis without being effectively used or enjoyed in St. Christopher and Nevis. Such documentary evidence should include a valid passport, travel itinerary or cruise ship identification pass.

Based on the destination principal, purchases by tourist from a duty-free shop for export would receive the zero-rated treatment; however, sales to locals for domestic consumption would incur the full payment of VAT where applicable.

Example

Martha Smithson, a tourist visiting the Federation on a luxury cruise line, purchases a diamond necklace at Diamonds R Forever at Port Zante. This item is zero-rated since the necklace will be shipped out of the country immediately upon departure of this cruise line. However, this is subjected to documentary evidence which should indicate that the purchaser Martha Smithson was a non resident.