Expense management module › Global expense management › Barbados
Last updated : 11.05.2026
Expense rules in Barbados.
Barbados applies VAT at 17.5%. English-speaking Caribbean island, BBD pegged to USD (2:1).
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1Expense rules & reclaimable VAT
VAT 17.5% standard, 10% tourism, 22% alcohol. BBD = $0.50 USD (fixed peg).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 17,5% | Deductible | Tax invoice + TIN |
| Lodging | 10% | Deductible | Tourism rate |
| Alcohol | 22% | Limited | Excluded |
| Fuel | 17,5% | Deductible | Invoice |
| Transport | 17,5% | Deductible | Taxi/airfare |
| Gifts | 17,5% | Non-deductible | Cap |
Receipt
Tax invoice
TIN mandatory
SourcesBarbados Revenue Authority
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesBarbados Revenue Authority
3Per diem and travel allowances
Company policy. Bridgetown most expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Bridgetown | BBD 60 | BBD 250 | BBD 450 |
| St James | BBD 70 | BBD 280 | BBD 500 |
| Speightstown | BBD 55 | BBD 220 | BBD 380 |
| Other | BBD 50 | BBD 200 | BBD 340 |
Conversion
1 EUR = ~2.15 BBD
USD peg 2:1
SourcesBarbados Revenue Authority
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Bi-monthly | Return |
| Non-resident | None | – | Final cost |
| IBC | Special regime | Per licence | Regime |
Limitations
5 years
Keep
SourcesBarbados Revenue Authority
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