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