Jamaica – Introduction of VAT on Short-Term Rentals 

The Parliament of Jamaica approved an amendment to the General Consumption Tax (GCT) to tax short-term rentals, such as those offered through platforms like Booking and Airbnb. Additionally, the GCT on tourism activities will increase from the current 10% to 15%. 

Timeline 

Taxation of short-term rentals offered through digital platforms shall start from April 1, 2027. 

Changes and Impact

Jamaica is growing exponentially when it comes to the influx of foreign tourists. More and more individuals are renting their places and hosting tourists, while enjoying a tax-exempt status. To increase public spending and tax revenues, starting from next year, these and similar types of short-term rentals shall enter into the scope of GCT. 

Short-term rental accommodation and related services shall be taxed with GCT at 15%. It is still a work in progress when it comes to are going to be future requirements and responsibilities of the digital platform operators, that facilitate the provision of these services. 

Will Jamaica expand its accountability for GCT also to the platform behind the short-term rental host, if it fails to collect and remit GCT when it should have done, or even to label a platform operator as a deemed supplier for all transactions concluded on it?

It remains to be seen in the following months, when new Regulations and Guidelines should be prepared by the Revenue authorities.