Consumers and businesses can look forward to a major boost in holiday shopping activity after Parliament approved an unprecedented amendment to the VAT Act, making Saint Lucia’s first VAT-Free shopping day possible.
On December 16, 2025, during the first sitting of the Thirteenth Session of Parliament, Prime Minister Philip J. Pierre tabled a motion to amend the VAT Act. The Lower House supported the amendment unanimously, clearing the way for a VAT-Free Day on December 22.
With the standard VAT rate set at 12.5%, participating businesses will offer eligible goods at least 12.5 cheaper on that day, putting real savings back into the pockets of Saint Lucians and helping families stretch their holiday budgets.
For businesses, the VAT-Free Day is designed to encourage higher foot traffic, stronger sales, and increases commercial activity, supporting wider economic momentum at a time when many businesses see peak seasonal demand.
How it works:
- Participation is voluntary.
- Businesses that want to take part must register with the Inland Revenue Department (IRD).
- Businesses that choose not to participate will continue to charge VAT and remit VAT revenue to the State as required by law.
The government thanks the private sector for cooperating and participating in this initiative, aimed at delivering immediate consumer relief while supporting stronger business activity across the country.
The guidelines for consumers:
