Barbadians to pay VAT on Zoom plans

Zoom will have to pay Value Added Tax (VAT) on their plan purchases from next month. Zoom Video Communications Inc., disclosed in a notice to customers on Monday that it is now required to collect and remit the 17.5 per cent tax on all supplies made to customers in Barbados. “The Barbados Revenue Authority (BRA) has now processed Zoom Video Communications, Inc. (Zoom) VAT registration application and, therefore, Zoom will begin charging VAT on or shortly after August 1, 2023, on its supplies to its customers in Barbados,” it informed. “In line with local reporting requirements, all supplies of electronically supplied services made to customers in Barbados will be subject to VAT. This applies both if you are registered for VAT in Barbados and if you are not registered for VAT in Barbados.” “Note that Zoom will only be collecting VAT for invoices generated on or after August 1, 2023. Invoices from prior periods will not be impacted,” it added while indicating that individuals are required to notify Zoom if their VAT registration status changed. When purchasing a Zoom meeting plan, customers who are registered for VAT must provide their 13-digit Tax Identification Number (TIN) if they require that the TIN be shown on the invoice. Zoom, a US-based video-telephony software programme, offers a basic free plan which limits meetings to 40 minutes with a maximum of 100 individuals. Paid plans range from the Pro which allows 30 hours per meeting and up to 100 attendees, offered at US$149.90 (BDS$299.80) per year, and the Business plan which was listed at US$199.90 (BDS$399.80) per year, allowing up to 30 hours and 300 attendees per meeting, to the Business Plus and the Enterprise plans which are not priced on the Zoom website. VAT on the Pro and Business plans would be approximately BDS$52.46 and BDS$69.96, respectively. (MM)]]>