Today, Monday, December 22nd, 2025, is the country’s first-ever Value Added Tax (VAT)-Free Day. The initiative is expected to deliver savings for shoppers and stimulate commercial activity in the run-up to Christmas.
The move follows a unanimous amendment to the Value Added Tax Act passed by the House of Assembly during the first sitting of the Thirteenth Session of Parliament on December 16.
Prime Minister Hon. Philip J. Pierre tabled the motion that paved the way for the VAT exemption, formally designating December 22 as the VAT-Free Day.Â
Under the current tax regime, the standard VAT rate in Saint Lucia stands at 12.5 percent. On the designated VAT-Free Day, consumers purchasing eligible goods from registered participating businesses will benefit from price reductions equivalent to that rate, offering tangible savings on essential and high-demand items.
According to the government’s official announcement, the measure has been designed to provide immediate financial relief for households grappling with holiday season expenses while bolstering foot traffic and sales for local merchants at a time of peak demand. Participation in the initiative by businesses is voluntary, and establishments wishing to take part are required to register with the Inland Revenue Department.
Government officials have highlighted that the VAT-Free Day is intended to help families stretch their budgets and inject momentum into the local economy, especially for small and medium-sized enterprises seeking strong end-of-year sales.
This policy marks a first for Saint Lucia and places the island in a growing list of Caribbean territories exploring temporary tax relief measures to support consumers and retailers alike during key shopping periods.