Invoicing and Tax regulation in Trinidad and Tobago
Invoicing Regulations in Trinidad and Tobago
In Trinidad and Tobago, proper invoicing is a mandatory requirement for businesses. They must issue invoices for all goods sold and services provided. The invoices should provide details such as date, invoice number, supplier's name and address, purchaser's name and address, description of goods and services, and the price. It is also necessary for companies to retain their invoices for a minimum of six years for audit purposes.
Real-Time Reporting / Fiscalization
There's no specific mandatory requirement for real-time reporting or fiscalization in Trinidad and Tobago. However, businesses are recommended to keep real-time financial records. This practice can be instrumental in maintaining accurate company accounts and it aids in fulfilling tax obligations efficiently as it makes tax preparation easier and faster.
E-Invoicing is not yet mandatory in Trinidad and Tobago. Currently, paper-based invoices are still accepted. Nevertheless, e-invoicing is encouraged as it streamlines business transactions, reduces paperwork, and speeds up payment processes. It can be especially beneficial for businesses operating in a digital or eCommerce environment.
VAT/GST/Tax Compliance for B2B, B2C and B2G Business
In Trinidad and Tobago, VAT compliance is mandatory and must be collected on the sales of goods and services. The standard VAT rate is 12.5%. However, there are exceptions to this such as zero-rated goods and services and those that are tax-exempt. Regarding B2G businesses, despite being a public entity, the government is subject to VAT regulations. Therefore, businesses are required to issue VAT invoices for goods and services supplied to the government. Tax returns must be filed monthly, and payments must be made to the Board of Inland Revenue.