In some -- but not all -- Caribbean destinations you also will pay taxes on general goods and services you purchase. U.S. travelers should be no stranger to sales taxes, nor should visitors from Canada or Europe find the Value Added Tax (VAT) a big surprise. Some islands use sales taxes, others charge the VAT. Puerto Rico, for example, recently began charging a 5.5% sales tax, while Jamaica charges a 15% General Consumption Tax on all goods and services.
Countries that charge a VAT include Barbados (15%), Dominica (5%), the Dominican Republic (16%), Grenada (25% for goods, 5% for services), and Trinidad & Tobago (15%). One bit of good news: many countries allow visitors to get a refund of the VAT if they make large purchases, so check with local merchants for the proper forms before you depart.
