Jamaica Value Added Tax

• General Consumption Tax (GCT): Jamaica's Value Added Tax is called General Consumption Tax (GCT).
• Imposition: GCT is applied to:
  • The supply of goods or services within Jamaica (if the supplier's turnover is above a specific threshold).
  • The importation of goods or services into Jamaica.
• Registration Threshold: Businesses with an annual turnover exceeding JMD 10 million must register for GCT.
• Standard Rate: The standard GCT rate is 15%.
• Variable Rates: Some goods and services are subject to different GCT rates:
  • Telecommunication services (including phone cards) and handsets: 25%
  • Hotels and the tourism sector: approximately 10%
• Exempt Items: Some basic food items, prescription drugs, and certain services (like some in construction, transportation, and finance) are exempt from GCT.
• Zero-Rated Items: Certain goods and services are zero-rated, including:
  • Some agricultural and fisheries inputs
  • Exported goods and services
  • Purchases by diplomatic and international organizations and foreign governments
• Imported Services: If services are imported from a non-resident supplier, the Jamaican recipient of those services is responsible for accounting for GCT. In some cases, the recipient may be able to claim a credit for this GCT.
• GCT Group Accounting: Affiliated entities can apply to be treated as a single taxpayer for GCT purposes, subject to approval by the Commissioner General of the Tax Administration Jamaica (TAJ).
• Advance GCT: A 5% advance GCT is levied on the commercial importation of goods by a GCT-registered taxpayer, with some exceptions.