Other USVI Taxes

There are no sales taxes in the USVI. There are several other taxes that do apply, however, including the following:

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  • Real Property Taxes
  • Gross Receipts Taxes
  • Excise Taxes and Customs Duties

While all of the taxes described here generally apply to USVI businesses, there are exemptions from all of them for exempt companies [7] and foreign sales corporations[8]. In addition, beneficiaries of the Industrial Development Program[2] are exempt from all of these taxes except for customs duties, where a special one percent rate applies.

Real Property Taxes.

USVI real property is subject to an annual tax at a rate of 1.25% of assessed value. Assessed value is defined by statute to be 60% of actual value.

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Gross Receipts Taxes.

The USVI imposes a tax of 4% on the gross receipts of USVI businesses. Businesses with annual gross receipts of less than $150,000 are exempt from tax on their first $5,000 per month of gross receipts.

Excise Taxes and Customs Duties

Articles imported into the U.S. Virgin Islands for use or resale in a trade or business are subject to an excise tax. Because the USVI is outside the U.S. customs zone, foreign (non-U.S.) made goods are also subject to a customs duty which is separate from the U.S. customs duty. The rate of excise tax on most goods is 4%, while the rate on certain products, such as cigarettes, is higher. Alcoholic beverages are subject to a flat rate based on volume. Certain other goods are subject to a lower rate of excise tax, and most tourist items, such as jewelry, watches, crystal, artwork, electronic goods, and leather goods, are exempt entirely. Tourist items are also exempt from the 6% U.S. Virgin Islands customs duty.

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