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Bahamas Launches VAT in 2014


03/06/2013

The Bahamas Government will introduce a value-added tax (VAT) beginning July 1, 2014.

The 15% VAT will cover a broad range of goods and services and will replace the Hotel Occupancy Tax.  However, a 10% VAT will apply to the business of hotels, including food and drink sold on their premises.

The VAT will not apply to exports and the international transport of goods and passengers.  Additional exempt goods and services will include duty-free food and agricultural products, health and education services, transfers of leases of land and residential buildings, financial services, and social and community services.

The Bahamas Government will require VAT filing and payment on a monthly basis.

 

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