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Second Hand Traders & Antique Dealers


A dealer in second hand goods shall be allowed an input tax credit for an acquisition of second hand goods if the supply of goods to the dealer was not a taxable supply; and the dealer sells the second hand goods in a taxable supply on which tax is charged at the standard rate.  VAT Act section 30 subsection (1) (f), (g), (h), and (i).

Hereby, “second-hand goods” means goods which have been previously

used except the following –

(a) precious metals or goods made of precious metals being-

(i) gold, in an investment form, of at least 99.5 percent fineness;

(ii) silver, in an investment form, of at least 99.9 percent fineness;

(iii) platinum, in an investment form, of at least 99 percent fineness;

(iv) goods to the extent that they would fall within (i), (ii) or (iii) if they were of the required fineness;

(b) diamonds, rubies, emeralds or sapphires that are not mounted, set or strung;

(c) animals or plants;

(d) real property; and

(e) goods valued at ten thousand dollars ($10,000.00) or less.




If Jane Doe (unregistered person) trades in a used vehicle worth $15,000 (market value of $20,000) to purchase a new vehicle worth $158,000 (VAT exclusive) from Car Ltd. 

The output tax on this transaction is $23,700 which is 15% of the cost of the new vehicle. Thus the amount of money to be received from Ms. Doe should be

Selling price (VAT exclusive)        158,000
VAT at rate of 15%                      23,700
Total                                        181,700
Less Trade In Value                     15,000
Amount to be paid                     166,700

The input tax credit that can be claimed in the month the vehicle is traded in is 70% of the tax fraction of the lessor of 
(a) the amount paid or
(b) the fair market value including tax

In the case of Ms. Doe, she received a credit on the total sale for the market value thus the $15,000 will be treated as the VAT inclusive for the calculation of input tax credit.

Thus the input tax credit which can be claimed by the car dealership is (in the month it is traded in)

Value of trade in vehicle            15,000.00 
Tax fraction                               15 / 115
70% allowed as input tax credit    1,369.57 

If car dealership adds trade in to its fleet and then sells vehicle for $20,000 (VAT exclusive), the output tax due is $3,000 (20,000 x 15%).

Please note a transaction is treated this way, whether with a registered or unregistered taxpayer where the transaction is not subject to tax at a positive rate. Examples

(a) when an unregistered person trades in or sells a vehicle to car dealer (registered person)

(b) when a registered person is not in the business of selling vehicles and the sale to car dealer is a one off transaction. 


Contact Us

St. Lucia Inland Revenue Department
VAT Section
Manoel Street
St. Lucia, W.I.

Tel: (758) 468 2800
Fax: (758) 452 4984

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