Bahamas issues July 2014 VAT implementation legislation
The Ministry of Finance has published last week new legislation to introduce Value Added Tax to the Bahamas for the first time.
The new Act will go through a public consultation. The final standard VAT rate has not been confirmed, but is expected to be between 10% and 15. There will be VAT registration threshold of Bahamian $100,000.
Many basic foodstuffs will be exempt from the new VAT. In addition education and gambling will be VAT exempt. This means there will be no VAT levied; however, the providers of these services will not be able to recoup any input VAT suffered. Financial services should also be VAT exempt, which follows the OECD model.
The implementation date of the new VAT regime is expected to be 1 July 2014.