Government is moving towards more effective collection of taxes from Barbados’ shared economy tourism accommodation, as revenue from that sector continues to increase.
Minister in the Ministry of Finance Ryan Straughn disclosed yesterday that from $9.63 million in levies collected in fiscal year 2022, revenue last year had increased to more than $42 million.
Leading off debate on the Tourism Levy (Amendment) Bill 2025 in the House of Assembly yesterday, he said that the shared economy levy and the room rate levy imposed on the sector in the Tourism Levy Act 2019, are to be deducted and paid directly to the Barbados Revenue Authority (BRA) on-line by the overseas agencies through which the accommodations are booked.
Form
He explained that the filing of revenues was formerly done by the shared economy stakeholders through submission of a form designed to provide the relevant information and the existing VAT infrastructure was used to allow the taxes to be paid through submission of that form.
The Bill makes better provision for the regulation of online transactions. It provides for the overseas agencies such as Airbnb, Expedia. com, Booking.com and such on-line agencies through which the bookings are made, to deduct and forward the relevant tax payments directly to the Barbados Revenue Authority while also paying the shared accommodation owners the portion of the monies due to them.
“What we are intending to do here is to make sure that we create and utilise the technology and also create the opportunity whereby the administrative burden on those Barbadians will no longer be there.
“This helps with improving the efficiency on how Government will collect the monies and make it easier for ordinary Barbadians to be compliant with respect to levies,” Straughn said.
According to the Bill, anyone who sells, offers for sale, or otherwise provides a tourist accommodation or a direct tourism service; operates an on-line marketplace or acts as a marketplace facilitator for such services, will be required to register with the Barbados Tourism Product Authority and the BRA In anticipation of an influx of visitors for the 2007 ICC Cricket World Cup in Barbados, Barbadians were encouraged to extend their properties to provide additional accommodation. Straughn said the response was heartening, as such small facilities had mushroomed and many visitors were opting for this type of accommodation, which he pointed out was an example of Government’s concept of community tourism.
Technology
“Not just big-time hotels and big-time investors now get to welcome people and make money, ordinary Barbadians are making money out of this tourism policy and with the help of technology, it means that the quality of the service Barbados has been known for, is really what will set your investment apart from that of your neighbour and travellers have been responding.” (GC)
The post Move to streamline room levy collection appeared first on nationnews.com.
