Dominica cuts hotel VAT rates

Dominica is to reduce its VAT rate on hotel accommodation from 15% to 10%.

The measure was announced in its 2014/2015 budget as part of a package of tax cuts to help attract foreign investment. Other changes included a cut in its corporate income tax rate from 30% to 25% by 2017.

The drop in the tourist hotel VAT rate mirrors similar changes around the world. Greece recently decreased its  tourist VAT rates from 23% to 13%.  Although other countries are eliminating such subsidies for the tourism industry due to mounting deficits, including a French hotel VAT rate rise this year.