Tour operators across Antigua and Barbuda who are registered for the Antigua and Barbuda Sales Tax (ABST) will be required to charge the full 17 per cent tax on their services from September 1, 2026.
The Inland Revenue Department (IRD) has issued a reminder to operators ahead of the change, which follows a Cabinet decision made on May 30, 2024 and an earlier notice issued by the department in June of that year.
Under the requirements, businesses providing tours that earn $300,000 or more in annual gross revenue are required to register for ABST and charge the 17 per cent rate.
This means bookings for tours taking place from September 1 onward should include the full ABST charge.
The IRD has clarified, however, that the tax does not apply to local transportation services where passengers are simply being transported from one location to another.
Tour operators will also see changes in the way they account for and file the tax.
Beginning with the September filing period, registered operators are expected to use the regular ABST03 form, which allows businesses to declare input tax. Only input tax incurred from September 1 onward should be claimed.
Operators will also be required to stop treating ABST as an expense on their income statements once the new arrangement takes effect.
The IRD said it will continue working with businesses in the sector to ensure tour operators are properly registered and understand their obligations under the ABST system.
Businesses requiring ABST forms for September and subsequent filing periods can request them by emailing [email protected].
17% is a big jump for small tour operators. Hopefully this doesn’t drive up prices too much for visitors and locals.
Taxes are part of doing business, but operators will have to adjust their prices carefully to stay competitive.
Good for them
People will just stop touring and stop taking on their services.