How vat / sales tax works in Cayman Islands
Cayman has no value-added or sales tax, so domestic supplies carry no output tax, no credits, and no returns.
Revenue runs through customs duties on imports, annual company and partnership fees, and VASP licensing charges.
Businesses price tax-exclusive across the chain, while imports face duty assessment at the border.
Tax rates at a glance
- VAT / GST
- 0% (none)
- Customs duty
- 22% standard
- Annual fees
- Fixed
- Registration
- None
- Filing
- None
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Fund managersFoundersHolding companiesExpatsFamily offices
Watch out for
- Zero VAT coexists with 22% standard customs duty, so import-heavy operations face material indirect cost.
- Annual registry fees recur regardless of activity, making dormant structures expensive.
- Importing from Cayman into VAT jurisdictions flips the picture instantly, with destination VAT and duty at the border.
- Substance and beneficial-ownership reporting create compliance loads that dwarf any VAT filing would.
Frequently asked questions
Does the Cayman Islands have VAT?
No. Cayman levies no VAT in 2026, so the headline is 0% with no registration or filing. Customs duties and annual fees apply instead.
What taxes do the Cayman Islands charge?
Customs duties, annual company fees, and licensing charges. No personal income, corporate, capital, or consumption tax.
Do I charge VAT selling from Cayman to Europe?
Cayman-side, no. But destination VAT and customs rules apply on arrival, so EU B2C sellers still need OSS or local planning.