Tax questions are the ones we hear most from new hosts: What do I charge guests? What do I remit? Did the rules just change? (Yes, they did — in January 2026.) Here's the current picture in plain English.
The two levies that matter
| Levy | Applies to | Rate |
|---|---|---|
| Shared Economy Levy (SEL) | Villas and shared accommodation (Airbnb-style lettings) | 10% of the accommodation cost |
| Room Rate Levy | Vacation rental properties | 3.75%, capped at US$17.50 per bedroom per night |
Suppliers registered for the Shared Economy Levy are exempt from VAT registration for that activity — one levy, not two. Both levies are collected from the guest by you (or the platform) and remitted to the Barbados Revenue Authority.
What changed in 2026
The Tourism Levy (Amendment) Act, 2026 brought online marketplaces squarely into the system:
- Both suppliers and marketplace facilitators (the platforms) must register with the Barbados Tourism Product Authority and the Revenue Authority.
- Advertised prices must flag the levy — either built into the displayed price or stated separately. Failing to notify guests carries a $5,000 fine.
- Collection and remittance failures carry fines up to $10,000; inadequate records, $5,000.
- Detailed transaction records are required: guest and supplier identity, property location, commissions, and amounts remitted.
What this means for you
Even if Airbnb collects a levy on your behalf, the registration and record-keeping duties are yours too. "The platform handles it" is not a defence the Revenue Authority accepts.
A host's monthly tax rhythm
- Confirm every booking shows the levy correctly in its pricing.
- Log the transaction — guest, dates, amounts, levy collected.
- Reconcile platform payouts against your records.
- File and remit to the BRA on schedule.
- Archive everything — records requirements run for years, not months.
Price it right, keep more of it
A levy handled well is invisible to guests; handled badly, it eats your margin or your review score. The professional approach is to model the levy into your dynamic pricing so your net income stays where you planned it — which is exactly how we price every property we manage.
Never file a levy return again
Our full-management clients get monthly statements with every levy calculated, collected, and remitted — and pricing tuned so compliance never eats their earnings. Talk to us about your property today.
Chat with us on WhatsAppDisclaimer: This article is provided for general information only and does not constitute legal, tax, or professional advice. Legislation and policy in Barbados continue to evolve — including the Tourist Accommodation Bill, which remains under review — and requirements may change. Always verify current requirements with the Barbados Tourism Product Authority, the Barbados Revenue Authority, or a qualified professional before acting.