A new regulatory change to the Antigua and Barbuda Sales Tax (ABST) system is set to reshape operations for the nation’s tour operating sector, with a phased implementation timeline kicking off on September 1, 2026. The policy change, which was formally approved by the country’s Cabinet during a session held on May 30, 2024, was first announced to industry stakeholders via an official circular from the Inland Revenue Department (IRD) dated June 27, 2024.
Under the updated rules, the core requirement mandates that all qualifying tour operators apply a 17% ABST rate to their customer bookings moving forward. The policy includes clear eligibility thresholds to reduce the burden on smaller businesses: only tour operators that generate annual revenue of $300,000 or more are required to complete tax registration and apply the new 17% rate. A specific exemption also remains in place for local transportation services, defined as point-to-point transit within the country, which will not be subject to ABST.
The IRD, which retains full administrative responsibility for the ABST system, has outlined clear procedural rules to guide operators through the transition. All new bookings confirmed on or after September 1, 2026, must include the 17% tax charge. For tax filing starting in September 2026, operators are required to submit their declarations using the standard ABST03 form, which is designed to accommodate input tax claims. Importantly, only input tax expenses incurred on or after the implementation date can be claimed under the new system.
Two additional key adjustments to accounting practices have also been confirmed: from September 1, 2026 onward, tour operators will no longer treat ABST as an expense on their income statements. All currency conversions for tax calculation purposes will continue to follow the standard exchange rate framework already established under existing ABST regulations.
To support a smooth transition, the IRD confirmed it will continue ongoing outreach and engagement with all tour operating businesses across the country. The department’s priority is to ensure that all eligible operators complete required registration, understand their new filing obligations, and can adjust their operational and accounting practices to meet the updated regulatory requirements ahead of the 2026 implementation date.