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Bahamas VAT implementation delay to 2015 with lower 7.5% rate

  • VAT
  • 31 May 2014 | Richard Asquith

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.

The new VAT proposals include:

  • 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

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.