Global Daily Tax News, Grenada Approves New Digital Services VAT Law, (May 13, 2026)

Grenada's parliament has signed off on the Value-Added Tax (Amendment) Bill, 2026, providing for the imposition of value-added tax on digital services supplied to consumers in Grenada, including by non-resident suppliers and electronic marketplaces.

The legislation provides that the non-resident platform or marketplace will be liable to collect VAT on behalf of business users in respect of business-to-consumer supplies to consumers in Grenada, unless the business user is itself registered for VAT in Grenada or has appointed a tax representative there.

The legislation sets out registration and record-keeping obligations on non-resident platforms and marketplaces, simplified administrative procedures for these taxpayers, and transitional rules. A simplified registration regime will be offered.

For business-to-business transactions, the legislation provides that VAT should be accounted for by the recipient under the VAT reverse charge mechanism.