Bahamas to introduce 15% VAT from July 2014
- 20 February 2013 | Richard Asquith
As part of plans to join the World Trade Organisation (WTO), the Bahamas has announced plans to introduce a full Value Added Tax regime from 1 July 2014.
The roll out of a VAT system will help meet the required reductions in import tariffs as laid down in WTO membership. The new VAT rate will be 15%, with a reduced rate of 10% for hotel accommodation. The provision of public transport will be zero rated, while a range of goods and services will be exempt, including: foodstuffs; financial services; healthcare; and education services. There will be a US$ 50,000 VAT registration threshold.
The preliminary details of the new VAT regime were published on 14 February 2013.