Apply for the First Time Homeowner’s VAT Refund in Four Simple Steps

Hi there! In this post, I will show your how to apply for the First Time Homeowner’s VAT refund in four simple steps.

I am sitting here thinking about the massive purchases we make in our lives, such as homeownership. It is a pretty costly undertaking, especially so as a first-time homeowner. As I continue in thought; I wondered if there is a way I can be refunded for some of the money I spent. I discovered this treasure last year when a friend of mine told me she applied for a VAT refund as a first-time homeowner. My instant response was, tell me more!

What exactly is this VAT refund and where can I find it?

Well, let’s talk about what exactly the VAT REFUND is. Under the VAT ACT, the Government of Barbados has introduced a rebate or grant to First Time Homeowners as long as they meet certain criteria. We talk more about these requirements later in the post. Think of it as recouping some of the value-added tax you paid on purchases during the construction or renovation of your home.

The grant is calculated on a home value of BDS$200,000 and it is calculated at a rate of 7%. It is worth it to note, to apply for the VAT refund the home must be valued at $400,000bds or less, but the calculation will be done on ONLY the value of BDS$200,000 or less.

For example, if your home was valued at $190,000bds, you can apply and your refund will be calculated as BDS190,000*0.07 = 13,300.00BDS.

As taxpayers, we no longer have the benefit of claiming the interest paid on our mortgage as a tax deduction. I would like to believe that the GRANT was implemented to remedy this and to assist different classes of Barbadian citizens. It is important to note, that the GRANT is not considered taxable income.

First Time Homeowners can submit an application to Barbados Revenue Authority through the TAMIS portal, which is the online tax administrative system for Barbados. Easy right! However, applying does not mean it ends there; there is a vetting and approval process by the relevant departments in government.

Great, How do I apply for the first time home owner’s vat refund?

Now that there is a possibility of receiving a refund, we will talk about how to make the application. The application for the refund can be made at any time of the year. It doesn’t have to be at the time of filing your personal income tax return.

In times past, the application was made in person at the relevant Barbados offices. Applications for the Homeowner’s grant are now done electronically, making the process easier than before.

This is done on the TAMIS website. Simply, log on to TAMIS’ website with your login details, scroll to the very bottom of the page. On the right-hand side under TOOLS and you will see a link entitled: “First Time Homeowner’s Request”, this will take you directly to the refund request form to complete. See the image below.

What are the requirements? Do I qualify for the first time homeowner’s refund?

To be eligible to apply for the First Time Homeowner’s Grant you meet the requirements outlined by Barbados Revenue Authority. These can be found by clicking HERE, but I will list them below along with additional considerations.

1. You must be a citizen of Barbados to apply for the grant.
2. As a citizen of Barbados, you will be required to have a TIN number to access the form on the TAMIS website.
3. You do not require a VAT number to apply for the First Time Homeowner’s Grant.
4. The home must be your place of residence.
5. The grant is only extended to you one time, as the name indicates it applies to First Time Homeowners.
6. You can apply for the grant, whether you purchased a move-in ready home, you purchased a property that required renovations or you built on a plot of land. The circumstances don’t matter as long as the monetary criteria is met, as discussed below.
7. The cost of your home is the item being considered by the Barbados Revenue Authority, not the cost of the entire property, that is the land and the house structure.
8. In order to apply for the grant, the cost of your home must be $400,000bds or less; at the time of writing this article.
9. Say, you own a parcel of land and you also purchased another property that has a residential structure, you are still permitted to apply for the grant on the second property.
10. However, if you have purchased your dream home with a property developer you are not eligible for this refund.
11. The application for the VAT refund should be done within two years of the completion of the home.

How do I fill out the first time homeowner’s vat refund?

The form begins with details that are self-explanatory such as, the address of the dwelling home that you are making the application for. After this, there is a section entitled ‘Additional Details’. Let’s discuss some of the requirements of this below.

MAP REFERENCE NUMBER

One requirement is the ‘Map Reference Number’ as seen in the figure above. The map reference number can be found on your land tax bill in the top right-hand corner under MAP.REF.NO.

PROPERTY VALUATION

This is the final value of the home which you live in, that is the dwelling home. Remember this is the cost of the structure and not the cost of the entire property. So, if you have constructed your home or bought a home and had renovations done; the cost can be found in the quanity suveryor’s report.

ADDITIONAL OWNERS

You are also required to list any additional owners of the dwelling house to complete the form. In this context, an additional owner is considered only if they recognized by law, that is their name is listed on any title deeds and documents as joint owner of the dwelling home.

You should be at the end of the form and you’ll need a number of things to complete the application.

• Certificate of compliance/completion from the Town and Country Planning department. An officer from TC&P will do a site inspection of your home after your home has been completed. You will be issued the certificate of compliance if the officer is satisfied that you have met all the necessary building requirements set out by TC&P.
• Someone who can verify that the home is indeed your place of residence and the value of the property. This can be done by obtaining an affidavit from an appointed Justice of Peace.
• A valuation on the property from a third party valuer.

What happens next?

So, you may ask, what’s next after I submit my First Time Home Owner’s refund request? After submission, you will be contacted by personnel from the valuation section of the department to set a time and date for a visit to your home.

Upon visiting your home, he/she does four major things:

• Personnel from the valuation section will do a site visit do an assessment of the property. This will include taking pictures
• They will have a conversation with you about your property
• They will also measure your property and record the measurements
• This information is then submitted to revenue management to process and the valuer will determine the value of your property and determine the amount to be refunded to you the First Time Homeowner.

I hope this post was helpful and guided you in filling out your First Time Homeowner’s application for your vat refund. If you found this post helpful, share it with a friend.

Interested in purchasing or building your first home? Click HERE to see what your first step should be.