Grenadines Airbnb operators urged to become VAT compliant

Taxpaying hoteliers in the Grenadines are claiming unfair competition from Airbnb which also operates in the Grenadines. This issue was highlighted in Finance Minister Camillo Gonsalves’ 2024 Budget address on Monday.

During his presentation, Gonsalves highlighted that the company has guest houses, villas and rooms available in the Grenadines.

The minister added “none of these Airbnb properties charge or pay VAT”, Value Added Tax.

He said that hoteliers on the islands who are required to pay taxes “consider this tax evasion to be an unfair competitive advantage for the Airbnb entrepreneurs.”

The Minister said government considers this action to be illegal and has encouraged tax compliance.

He promised to work with Airbnb, as well as with local hoteliers to “close loopholes and bring about awareness of existing Laws”.

Airbnb is an online marketplace that connects property owners with prospective tenants.