Dominica exempts imported aircraft and aircraft maintenance parts from VAT

What changed in detail

The Value Added Tax (Schedule) (Amendment) Order, 2024 (Statutory Rules and Orders No. 18 of 2024) was made by the Minister under section 105(1) of the Value Added Tax Act, Chap. 67:08, and gazetted on 15 August 2024. Paragraph 1(2) provides that the Order is deemed to have come into force on 1 May 2024, so it applies retroactively by three and a half months.

Paragraph 3 amends Schedule III of the Act by inserting a new paragraph 25 immediately after paragraph 24. The new paragraph covers two groups of imports:

• aircraft imported by a person who holds a valid air transport licence or permit for scheduled or unscheduled flights; and
• aircraft spare parts, tools and equipment imported solely for use in the servicing and maintenance of the aircraft.

The Order makes no other change to the Act.

What it means

The exemption has applied since 1 May 2024 and is still in force: no later instrument recorded here removes paragraph 25. Because the Order was gazetted in August but deemed effective from May, the exemption also reaches qualifying imports made between 1 May and 15 August 2024, before anyone could read it in the Gazette.

The scope is narrower than “aviation”. The aircraft limb depends on the importer holding an air transport licence or permit, and the parts, tools and equipment limb depends on use solely for servicing and maintaining aircraft. Goods with mixed or general use fall outside it.