Mandatory Room Rate Levy from July 1, no exemptions
Government has given tourism accommodation provider a reminder that effective Sunday, July 1, the mandatory “Room Rate Levy” will be applied to all bedrooms per night on the island.
In a notice issued today, the Ministry of Tourism and International Transport stated that the levy, which is to be paid by guests, will be applied at the following rates:
Villa Sub Sector and all other Vacation Rental Properties however defined – 2.5 per cent of the nightly rate, capped at USD $10.00; Luxury Class Hotels – USD $10.00; “A” Class Hotels – USD $5.00; and “B” Class Hotels, Apartments and Guest Houses – USD $2.50.
The Ministry requested that the levy be fully disclosed to guests through signage at the front desk, or by email or written correspondence in the absence of front desk facilities.
“Guests should be informed that the levy will be applied to the full duration of stay for persons who will be travelling to Barbados from July 1. Guests, who checked into accommodation before July 1, should be notified that the levy will be applied to the duration of their stay,” it indicated.
Tourism accommodation providers are also being reminded that the Room Rate Levy is payable to the Barbados Revenue Authority. Providers who are not registered or classified should contact the Barbados Tourism Product Authority, the Ministry said.
Failure to comply with the payment of the Room Rate Levy will result in penalties as prescribed in the governing legislation.
Also taking effect from Sunday, July 1, will be a 2.5 per cent Product Development Levy on Direct Tourism Services as defined in the Value Added Tax (amendment) Act, 2013-22 and the Value Added Tax (Amendment) Act, 2018-12.
This includes island tours, cruises other than international cruises, meals, drinks and dining services, as well as goods and services provided by spas, retreats and marinas as outlined under legislation. For further queries, persons have been advised to contact the Product Quality Unit of the Barbados Tourism Product Authority at 535-3700.
The Room Rate Levy and the Product Development Levy are part of the fiscal measures being implemented under the 2018 mini-budget, which was laid in Parliament on June 11, to help stabilise the country’s economy.