The system of value added tax (VAT) that exists within the European Union is not applicable to Saint-Martin.
There is however a tax on turnover, namely the TGCA “
Taxe générale sur le chiffre d’affaires
”, whose rates are
very low (2% or 4%), and which is levied in practice on the retail sale of goods as well as all types of services.
This tax is neutral for companies working in retail sales (which alone are taxable). Companies collect the tax
from their customers and return it to the
The same applies for services invoiced to individuals. In contrast, firms that use service providers (accountants,
telephone operators...) or that acquire fixed assets, pay the TGCA invoiced by their suppliers. The rate is
however very low (2% or 4%) and it is deductible from taxable income subject to corporate tax (in the form
of expense or allowance for depreciation).
The TGCA is levied in principle on all supplies of goods,
namely the sale of goods and services provided in exchange
for payment within the territory of the
Martin by persons that act independently as producers,
traders or persons supplying services.
Transactions excluded from the scope of the
The following operations are outside the scope of the
imports of goods into
deliveries to taxable persons of goods produced in
Saint-Martin. Considered as production activities are
those operations related to the manufacturing or pro-
cessing of goods, except those leading to the delivery
of electricity, water, gas, heat or cold distributed via
a network. Also regarded as production activities are
mining operations, agriculture, fishing and aquaculture;
supplies of goods for resale or supplies to be used by
the company, either for purchase / resale transactions,
or for the purposes of providing a service.
In contrast, the supply of services other than those
specifically exempt (see below) are systematically subject
The buyer, if it is a company, can of course include in its
deductible expenses from taxable income the tax-included
price of the services that it has received for the perfor-
mance of its business.
The following are exempt in particular:
exports, in other words, the supply of goods to buyers
domiciled or based outside Saint-Martin or St. Maarten;
road, air or sea transport services;
most banking and financial transactions.
Purchases of goods from wholesalers are therefore
not subject to the tax as long as the goods are to be sold
as is or to be used to provide services (catering sector,
This rule avoids the accumulation of taxes on the supply of
goods and ensures the neutrality of the TGCA tax whatever
the distribution network may be (whether or not there
are intermediaries). The tax burden lies only on the sale
to the final user.
DOING BUSINESS IN SAINT-MARTIN