The Anguilla House of Assembly has passed legislation enabling major reforms to the taxation of goods and services, aimed at cutting costs for residents and boosting local businesses.
The changes, passed on 29 July, will see goods and services tax (GST) removed from all goods sold in Anguilla from 1 August.
The 13% compounded tax currently charged at ports will instead be replaced by a new 9% goods tax, while essential non-confectionary food items will remain exempt.
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The government said the reform “is designed to put more money back in the hands of consumers, reduce the cost of basic necessities, and simplify the way taxes are applied across the economy”.
Tax on services will be renamed general services tax and the rate will remain unchanged at 13% – however, several sectors will now be exempt.
They are retailers, wholesalers, manufacturers, restaurants, bars, mobile food vendors, catering services and promoters.
“These exemptions help small businesses thrive, support job creation and lower the cost of goods and services for everyone,” the government said.
Legislative changes
In order to implement these changes, the Goods and Services Tax Act, 2021 has been repealed and replaced by two new pieces of legislation.
The Goods Tax Act, 2025 applies only to goods and the General Services Tax Act, 2025 applies to services.
The shift is expected to simplify tax administration and improve clarity for both consumers and businesses.
Other changes include a significant reduction in penalties for late filing – from EC$500 per day to $50 per day, capped at $2,000.
According to a government statement on 31 July, the restructuring of the goods and services tax system is a commitment to improving the lives of residents and business owners.
It aims to meets the administration’s four key objectives – to reduce inflation, to provide food security, to increase consumer purchasing power and to stimulate economic growth.
The bills for the Goods and Services Tax (Amendment) Act, 2025, General Services Tax Act, 2025 and Goods Tax Act, 2025 were read for the third time and passed with amendments.
