On 30 July 2026, the Ministry of Finance released a media release detailing the applicable tax framework for hybrid and mild hybrid vehicles imported into Trinidad and Tobago. The guidance clarifies the treatment of these vehicles under the Customs Act, Value Added Tax (VAT) Act, and Motor Vehicles and Road Traffic Act, specifying duty rates, VAT applicability, and any exemptions or concessions for environmentally friendly vehicles.
Key Takeaways
- Differential Duty Rates: Hybrid vehicles benefit from reduced customs duty rates compared to conventional internal combustion engine vehicles, aligning with green policy incentives.
- VAT Treatment: VAT is levied on the CIF value plus applicable duties, with no special exemption for hybrids unless explicitly stated in the VAT (Amendment to Schedule 2) Order.
- Classification Guidelines: The release provides clear definitions distinguishing between full hybrids, mild hybrids, and plug-in hybrids for accurate tax assessment.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement