GST Christmas Waiver: Here’s How It Works for Shoppers and Businesses

The Briceño Administration is introducing the first-ever General Sales Tax (GST) Christmas Waiver this year. A release from the government says that this aims to provide financial relief to Belizean shoppers while boosting local businesses. Here’s everything you need to know about how it works and how you can benefit.

What is the GST Christmas Waiver?

On December 14, 15, 21, and 22, 2024, shoppers across Belize will be able to buy ALL standard-rated goods at local retail stores without paying the 12.5% GST. This means lower prices at checkout for a wide range of everyday items.

In addition, for the entire month of December, certain holiday favorites — picnic shoulder hams, smoked ham legs, and imported turkeys — will be zero-rated, meaning no GST will apply to these products for the entire month.

How Does It Work for Shoppers?

If you’re shopping on the designated GST-free days (December 14, 15, 21, and 22), here’s what you need to know:

No GST added on immediate local retail purchases of standard-rated goods.

This applies only to purchases made and paid for on the spot. Items bought on credit, layaway, hire purchase, or consignment are NOT included.

Check your receipt! Make sure GST is not applied at checkout. If you spot any errors, report them to the Belize Tax Services Department.

What’s NOT included? Some items are not eligible for the waiver, including motor vehicles, gasoline, LPG, diesel, firearms, ammunition, cigarettes, and alcoholic beverages. Additionally, the waiver does not apply to services, only to physical goods.

How Does It Work for Businesses?

For GST-registered businesses, the process is simple and requires minimal adjustment. Here’s how to comply:

For POS systems and programmable cash registers, apply a 12.5% discount at checkout instead of reprogramming the system.

For basic cash registers, simply exclude GST from the final sales price on the eligible dates.

Businesses must still pay GST on imported goods at Customs, and GST continues to apply to wholesale purchases.

When filing GST returns for December 2024, zero-rated sales must be reported on line 110 of the return form, with supporting details on the sales made during the GST-free days.

Businesses can still recover input tax as usual for eligible purchases.

What Items Are Excluded from the GST Waiver?

Certain products are not covered by the GST waiver. These include:

Motor vehicles

Gasoline, diesel, and LPG

Firearms and ammunition

Alcoholic beverages

Cigarettes
Additionally, the waiver does not apply to services, such as professional fees, utilities, or other service-based transactions.

Why Is the Government Doing This?

The press release says this initiative is part of the Government of Belize’s broader effort to combat global inflation and provide direct relief to Belizeans facing the rising cost of living. At the same time, it aims to support local businesses by encouraging higher sales during the holiday season.

Need Help or Have a Complaint?

Shoppers and businesses alike are encouraged to contact the Belize Tax Services Department if they encounter any issues or have concerns about GST being improperly charged.