POLICY 20- VAT and Sports

This policy forms the guiding principle as it relates to zero-rated items which may be used within the sports sector.

Under the Value-Added Tax Act of 2005, Schedule I provides a list of the goods and services which attract VAT at the rate of zero- percent (0%).

The following items are zero-rated under Schedule I:

1. A supply of sports gear or sports equipment qualifying for exemption from Custom duties under the First Schedule to the Customs Act.
2. The supply of a cup, medal, shield or similar trophy, imported for the purpose of bestowal as an honorary distinction or prize, and either won abroad or awarded by a donor resident abroad. It be must noted that the above mentioned items must be shown to the satisfaction of the Commissioner-General that they are not:-
3.  for general use
4. bearing any advertisement,
5. imported or stocked for the purpose of trade.
6. A passenger vehicle, as shown to the satisfaction of the Commissioner-General to have been won abroad, or bestowed as an honorary prize to a sports personality.

With respect to the above provisions, a written request for the zero-rating of sports gear, sports equipment, cups, medals, shield, other trophies, etc. from VAT must be made to the Commissioner-General and an invoice of the items to be imported must also be attached.

Additionally, a recommendation from the Ministry of Culture, Youth and Sports is required before consideration is given to the request for zero-rating of the item (s). The above zero-rated concessions are only available to sports organizations and individuals who satisfy the above provisions.

Please be advised that VAT-registered companies which supply the above listed items are required to charge VAT at a standard rate of 16%. It is only after written approval from the Commissioner-General is granted that the item(s) will be zero-rated.

Persons who have queries with reference to VAT are encouraged to write to the Commissioner, VAT and Excise Tax Department, 210 ‘E’ Albert and Charlotte Streets, Bourda for clarification.