🇩🇲 Inland Revenue Division (IRD) • Value Added Tax Act 2005
Dominica Value Added Tax (VAT) Calculator
Calculate Dominica Value Added Tax liabilities and invoice breakdowns. Models 15.0% standard rate, 10.0% hotel & eco-tourism rate, zero-rated exports, input tax credits, and the EC$ 250,000 statutory CVR threshold in XCD and USD.
Statutory VAT Benchmarks 2025/2026 Rules
Standard Commercial Rate
15.0% Flat
Goods, equipment & services
Tourism & Hotel Rate
10.0% Reduced
Accommodation & dive tours
Registration Threshold
EC$ 250,000 /yr
Mandatory IRD registration
Filing Frequency
Monthly Return
Due 20th of following month
Invoice & Return Details
EC$ / XCD
Base taxable value before 15% VAT is assessed.
Total Gross Amount (Inkl. VAT)
EC$ 3,450.00
USD $1,277.78 (Fixed peg 2.70)
Statutory VAT Component
EC$ 450.00
15.0% Dominica IRD Tax
Dominica Tax Invoice Specification IRD Form VAT 1
Net Taxable Amount (Excl. VAT) EC$ 3,000.00
Dominica VAT Charged +EC$ 450.00
Total Customer Invoice Amount EC$ 3,450.00
Registration & Statutory Deadlines
EC$ 250k Annual Threshold
EC$ 62,500 / Quarter
Mandatory registration applies once commercial sales exceed cutoff.
Return Filing Deadline
20th of Each Month
Monthly return and payment due to IRD by the 20th calendar day.
Comparison: Dominica VAT Structure vs. Eastern Caribbean Jurisdictions
Comparative analysis of standard VAT rates, tourism accommodation concessions, and mandatory annual registration thresholds.
| Country | Standard VAT Rate | Tourism / Hotel Concession | Registration Threshold | Filing Schedule |
|---|---|---|---|---|
| 🇩🇲 Dominica | 15.0% | 10.0% (Hotels & Diving) | EC$ 250,000 | Monthly (20th) |
| 🇱🇨 Saint Lucia | 12.5% | 7.0% – 10.0% | EC$ 400,000 | Monthly (21st) |
| 🇬🇩 Grenada | 15.0% | 10.0% | EC$ 300,000 | Monthly (20th) |
| 🇧🇧 Barbados | 17.5% | 10.0% | BBD 200,000 | Monthly (21st) |
MS
Verified Author & Regulatory Systems Architect
Engr. Muhammad Shahzad
Principal Systems Engineer & Caribbean Indirect Taxation Specialist
Designer of deterministic point-of-sale tax computation algorithms, input VAT reconciliation modules, and multi-tier Caribbean consumption tax engines adhering to the Dominica Value Added Tax Act.
🏛️ Value Added Tax Act 2005 • 💼 Inland Revenue Division (IRD) Form VAT 1 • View Author Credentials →
Frequently Asked Questions (FAQ)
What is the standard VAT rate in Dominica?
Under the Value Added Tax Act 2005 administered by the Inland Revenue Division (IRD), the standard rate of VAT in Dominica is 15.0% on most commercial goods and professional services.
What items qualify for the reduced 10.0% VAT rate in Dominica?
A concessional rate of 10.0% VAT applies specifically to hotel accommodation, dive packages, eco-tours, and approved tourist transport excursions provided by certified tourism operators.
What is the mandatory VAT registration threshold in Dominica?
Any enterprise whose gross taxable commercial supplies exceed EC$ 250,000 per year (or EC$ 62,500 over any consecutive 3-month period) is legally obligated to register for VAT with the Inland Revenue Division.
How is VAT extracted from a gross price in Dominica?
For the standard 15% rate, divide the gross amount by 1.15 to obtain the net base price. The embedded VAT equals Gross × (15 ÷ 115) or approximately 13.043% of the gross price. For the 10% rate, divide by 1.10.
Which supplies are exempt or zero-rated under Dominica VAT laws?
Zero-rated supplies (0% VAT with full input tax recovery) include exports, basic staple foods (flour, rice, milk, bread), and prescription medications. Exempt supplies (no VAT charged, but no input recovery) include domestic residential rent, financial services, healthcare, and water utility services.
📊 Dominica Inland Revenue Division (IRD) & DSS Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (XCD) |
|---|---|
| Primary Net / Statutory Payable Amount | EC$ 0.00 |