Bahamas VAT implementation delay to 2015 with lower 7.5% rate

Following the delay in the Bahamas 15% VAT implementation, new plans were proposed this week to attempt a new date in 2015 with a significantly lower rate of 7.5% according to the 2014-15 budget.

The consumption tax was initial proposed as part of membership requirements for the World Trade Organisation.  This required a significant cut in import tariffs and loss in government revenues.  The Bahamas currently has no consumption tax regime.

• implementation 1 January 2015
• 7.5% standard VAT rate
• Exemption for exports
• Fewer exemptions for other goods to pay for the standard rate cut
• Delays to the proposed import tariffs and duties until at least 2015/16