St Lucia Parliament approves VAT-Free day
ON THE PENULTIMATE shopping day before Christmas day, shoppers in St Lucia will pay 12% or less for retail goods. This follows a decision by the St Lucia Parliament to declare December, 22 2025 a VAT-free day. A release from the office of Prime Minister, Philip J. Pierre states that consumers and businesses can look forward to a major boost in their holiday shopping activity after Parliament approved an amendment to the VAT Act, paving the way for the special shopping day.
The decision of Parliament on December 16, 2025, came during the first sitting of the Thirteenth Session of Parliament, when Prime Minister Pierre tabled a motion to amend the VAT Act. It came 15 days after his St Lucia Labour Party swept the polls in general elections.
The Lower House supported the amendment unanimously, clearing the way for the VAT-free day on December 22, 2025.
With the standard VAT rate set at 12.5%, the release states that participating businesses will offer eligible goods at least 12.5% cheaper on that day, “putting real savings back into the pockets of Saint Lucians, and helping families stretch their holiday budgets”.
For businesses, it said the VAT-free day is designed to encourage higher foot traffic, stronger sales, and increased commercial activity, supporting wider economic momentum at a time when many businesses see peak seasonal demand. Participation is voluntary, and businesses that want to take part must register with the Inland Revenue Department (IRD).
Businesses that choose not to participate will continue to charge VAT and remit the VAT revenue to the State as required by law.
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