Proposed, not yet law: Trinidad and Tobago Budget 2027 proposes a TTD 100 late-return VAT penalty, a clearance certificate fee and mandatory GENTAX filing
This change is proposed and is not law. The rules below describe what would change if it is adopted.
- Jurisdiction
- Trinidad and Tobago
- Tax
- VAT
- Change type
- Compliance
- Status
- Proposed
- Impact
- Watch
- Announced
- 12 October 2026
- Effective
- 1 January 2027
- Authority
- Ministry of Finance, Trinidad and Tobago
- Systems
- Reporting
- Verified
- Fetched from official source · high confidence
VAT-registered taxpayers in Trinidad and Tobago; Government entities that make no taxable supplies.
File Trinidad and Tobago VAT returns on time and via GENTAX; budget for TTD 100 penalties per two-month period outstanding.
Reporting
The Trinidad and Tobago 2027 Budget Statement (12 October 2026) proposes: a TTD 100 penalty for every two months a VAT return remains outstanding (from 1 January 2027); a TTD 100 fee for a VAT Clearance Certificate (from 1 January 2027); unregistration of Government entities that make no taxable supplies (within the first quarter of 2027); and mandatory electronic filing through the Inland Revenue Division GENTAX system for all taxpayers (no effective date stated). Not yet legislated.
What changed in detail
These are proposals in a budget speech, not law, and none has been legislated. The Trinidad and Tobago 2027 Budget Statement, delivered on 12 October 2026, proposes the following VAT compliance measures:
- a penalty of TTD 100 for every two months that a VAT return remains outstanding, from 1 January 2027;
- a fee of TTD 100 for a VAT Clearance Certificate, from 1 January 2027;
- unregistration of Government entities that make no taxable supplies, within the first quarter of 2027;
- mandatory electronic filing through the Inland Revenue Division’s GENTAX system for all taxpayers, with no effective date stated.
The statement notes that penalties currently apply for non-filing of Income Tax and Corporation Tax returns but that there is no comparable penalty for non-filing of VAT returns.
What it means
If enacted, late VAT filers would face a recurring penalty for the first time, so filing calendars and reminders become more important from January 2027. The GENTAX proposal has no date, so businesses still filing on paper should check their GENTAX access early. Nothing takes effect until the legislation passes.
Proof
To address this gap and strengthen VAT compliance, the Government will introduce a penalty of $100 for every two months that a VAT return remains outstanding.
Source snapshot of the official page. Open full size ↗