Standard VAT rates in the calculator
The presets use each country's standard rate. Other rates apply to certain goods and services, so treat the standard rate as the starting point and check your own products.
| Country | Standard rate | Registration threshold | Worth knowing |
|---|---|---|---|
| Trinidad and Tobago | 12.5% | TT$600,000 over 12 months | Basic food items and agricultural supplies are zero-rated. |
| Guyana | 14% | Not stated here | VAT is charged at 14% or 0%. Several food items and consumer products are exempt. |
| Barbados | 17.5% | BBD 350,000 (from 1 Oct 2026) | Basic food items are zero-rated. Mobile voice, data and text are taxed at 22%. |
| The Bahamas | 10% | BSD 100,000 over 12 months | Medical and hygiene products are 5%. From 1 April 2026, unprepared food in food stores is exempt. |
Adding VAT to a price
Multiply the price before VAT by one plus the rate. The VAT is the difference.
In Trinidad and Tobago at 12.5%, a $200 item becomes $200 × 1.125 = $225, of which $25 is VAT. In Guyana at 14%, $100 becomes $114. In the Bahamas at 10%, a $50 item sells for $55.
Taking VAT out of a price
When the shelf price already includes VAT, divide by one plus the rate. Do not subtract the rate as a percentage of the total. The tax was calculated on the smaller, pre-tax price.
In Barbados at 17.5%, a shelf price of $117.50 divided by 1.175 is $100.00, with $17.50 of VAT. Subtracting 17.5% of $117.50 would take off $20.56 and leave $96.94, which is wrong by more than three dollars.
A useful way to check yourself: the VAT inside an inclusive price is rate ÷ (100 + rate) of it. At 12.5%, that is one ninth. A $450 Trinidad price holds $50 of VAT.
Zero-rated and exempt are not the same
Both mean the customer pays no VAT on the item, but they work differently for a registered business. A zero-rated item is still a taxable supply, taxed at 0%. You can usually reclaim the VAT you paid on the stock and costs behind it. An exempt item is outside VAT, so you generally cannot reclaim the VAT you paid on the costs of selling it.
For a grocery or mini-mart this matters. In Trinidad and Tobago, basic food items are zero-rated. In Guyana, a number of food items are exempt. In the Bahamas, unprepared food in food stores became exempt from 1 April 2026. Your mix of products decides how much VAT you actually collect. Ask your tax authority or accountant which category each of your top products falls into.
VAT and your profit
VAT you collect belongs to the government. Work out your margin on the price before VAT, or it will look larger than it is. A Guyana item that costs you $80 before VAT and sells for $114 on the shelf earns you $100 - $80 = $20 after VAT is removed, a margin of 20%. Using the $114, it looks like $34 and 29.8%.
Set your margin on the pre-VAT price with the markup and margin calculator, then add VAT here. The Trinidad and Tobago, Guyana, Barbados and Bahamas pages cover each market in more detail.
Sources
- Trinidad and Tobago, 12.5% and TT$600,000 threshold, zero-rated food: PwC Worldwide Tax Summaries, Trinidad and Tobago.
- Guyana, 14% or 0%, exempt supplies: PwC Worldwide Tax Summaries, Guyana.
- Barbados, 17.5% and 22% on mobile services: PwC Worldwide Tax Summaries, Barbados. Threshold raised from BBD 200,000 to BBD 350,000 from 1 October 2026: KPMG, Barbados 2026 budget.
- The Bahamas, 10%, 5% reduced rate, BSD 100,000 threshold, food exemption from 1 April 2026: PwC Worldwide Tax Summaries, The Bahamas.
- All checked 6 October 2026.
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