Barbados VAT calculator 2026

Most goods and services in Barbados carry Value Added Tax at 17.5%. Two groups pay a different rate: accommodation and direct tourism services at 7.5%, and telecommunications services at 22%. Pick the group that fits your purchase and the calculator does the rest.

Use it when you quote a customer, check a receipt or split a VAT inclusive price into the part that goes to the Barbados Revenue Authority and the part the seller keeps.

How it's calculated

To add VAT, multiply the price by the rate and add the result. At 17.5%, a Bds$1,000 price becomes Bds$1,175.
To take VAT out, divide the VAT inclusive price by one plus the rate. At 17.5% that means dividing by 1.175.
Hotels and other direct tourism services use 7.5%, so a Bds$800 bill carries Bds$60 of VAT.
Telecommunications services use 22%, so a Bds$200 phone bill carries Bds$44 of VAT.

An example

A shop sells a washing machine for Bds$2,400 before VAT. At the standard rate the VAT is Bds$420.00 and the shelf price is Bds$2,820.00. If a customer holds a Bds$2,820.00 receipt, dividing by 1.175 gives back the Bds$2,400.00 net price.

Frequently asked questions

What is the VAT rate in Barbados?

The BRA lists 17.5% as the rate for standard supplies, 7.5% on accommodating direct tourism services and 22% on telecommunications services.

Which services pay the higher telecom rate?

The BRA VAT rates page shows 22% on telecommunications services. Everything else you buy day to day is normally at the standard rate unless the BRA treats it as zero rated or exempt.

Does this calculator cover zero rated and exempt items?

No. Zero rated items such as many basic foods carry no VAT, and exempt supplies are outside the tax. Check the BRA list of zero rated items before you apply a rate to a particular product.

Key terms

VAT: Value Added Tax, collected by the Barbados Revenue Authority on taxable supplies.
Standard rate: The rate on most goods and services, currently 17.5%.
Zero rated: A supply taxed at 0%, where the seller can still claim back the VAT paid on costs.
VAT inclusive price: A price that already contains the VAT, as on most shelf tags and receipts.