31st May 2024

LUCELEC issued refunds of VAT charged on reconnection fees to over nineteen thousand customers

By LUCELEC

St. Lucia Electricity Services Limited (LUCELEC) has issued refunds of VAT (Value Added Tax) charged on reconnection fees to over nineteen thousand customers for the period 2020-2023.  This follows a thorough reassessment prompted by a recent clarification of the December 30, 2019, amendment to the VAT Act that reversed the VAT previously charged on reconnection fees.

Between January 1, 2020, and September 4, 2023, customers who were disconnected for arrears were charged $2.75 VAT for every reconnection fee payment. The Company discontinued VAT charges on its reconnection fee on September 4, 2023, in line with its reassessment of the Government policy.

It is important to note that, in compliance with the law, the collected VAT was paid to the Government of Saint Lucia. The Company has issued refunds to customers while still in discussion with the Inland Revenue Department regarding its recovery of these returned funds.

The VAT refunds have been made to 19, 368 customers and will appear as a credit on bills issued from April to May 2024.   

LUCELEC regrets any inconvenience caused by this misinterpretation and encourages customers to contact its Customer Service team via email at [email protected] or telephone 285-3329, 285-3593, 285-6796,285-7859 or 285-8640 for further clarification.

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