Bahamas VAT update

Following the introduction of 7.5% VAT to Bahamas at the start of 2015, the latest budget has provided with changes to the consumption tax regime. These include:

• VAT registered businesses will be henceforth required to retain output VAT collected on sale in a separate bank account from the company’s main account
• VAT payers must provide electronic ledgers for submission to the tax authorities with details of taxable transactions and adjustments through returns or credit notes
• Require VAT payers submitting quarterly returns to remit VAT payments of collected tax on a monthly basis
• Fresh guidance on the deductibility of VAT and anti-avoidance rules for insurers