Inland Revenue makes new 15-day deadline for filing ABST returns official

The Inland Revenue Department (IRD) has officially announced
changes to the Antigua and Barbuda Sales Tax (ABST) filing date,
following the passing of the Antigua and Barbuda Sales Tax
(Amendment) Act, 2024 by both Houses of Parliament.
This law took effect on March 1.

In February, in spite of objections from Opposition MP’s, the Lower
House passed the Bill, which seeks to change the lodgment of ABST
Returns from 30 days after the end of the tax period to 15 days.
 
Those who fail to file in a timely manner will face penalties,
according to the law.

In giving the official alert of the new tax-compliance procedures,
Inland Revenue Commissioner Ralph Warner reminded businesses
that are registered for the ABST that they have to file their

remittances and pay the sales tax collected by the 15th of each
month.
 
Accordingly, Warner says that March remittances will now be due
and payable on April 15.
 
Businesses that have received ABST forms for March and April 2024
can now request new forms from the Inland Revenue Department,
and these will include the new due dates.
 
Warner says the Department stands ready to assist with any
additional information needed to facilitate this important activity.
 
As its rationale for reducing the filing period, the Administration
says it is trying to improve the efficiency of tax administration.
 
Opposition MP’s who objected to the amendment last month noted
that businesses were having difficulty remitting the sales tax in a 30-
day timeframe when the rate was 15 percent.

Now that the rate has been increased to 17 percent, they asked, how
is it possible for them to remit their taxes in a shorter time frame.
Meanwhile, Comptroller of Customs Raju Boddu – along with his
deputy; the IT specialist; and several Customs officials charged with
“discouraging fraudulent activities” – met with the Executive on
March 6.

Reports say their discussion was focused upon the forms that are
used by brokers to clear goods, especially when waivers of duties,
the ABST, the Revenue Recovery Charge (RRC), or the
Environmental Levy are sought.

Reportedly, new forms will be introduced from April 2024 and will
include a QR Code that is generated by computers.
 
These forms will cost $20 and will require the original signature of
Finance Minister Gaston Browne or someone acting in his absence.
 
The Cabinet is hoping that this new measure will facilitate an audit
trail that will generate checks and balances.