Bahamas Releases Sector-Specific VAT Guides
The Bahamas VAT Department on September 1, 2014, released fifteen value-added tax (VAT) guides, providing additional in-depth guidance on the taxation of different economic sectors and on special schemes.
The Bahamas will introduce a 7.5 percent value-added tax regime from January 1, 2014. The guides released now cover:
- The retail and wholesale trade;
- The transportation of passengers and goods;
- Financial and insurance services;
- Professional services;
- The Hawksbill Creek agreement;
- Construction services;
- Motor vehicles;
- Medical and healthcare services;
- Charitable organizations;
- Education services;
- Land and property;
- Duty-free shopping;
- Holiday accommodation; and
- The flat-rate scheme.
The release of the guides follow the publication of the General VAT Guide on July 30, 2014. They provide more detailed information specific to industry sectors, with examples of the tax treatment of specific situations and circumstances. The VAT Department plans to expand and revise the guides based on feedback. Additional guides are also to be released on the taxation of the hotel industry, cash accounting, and transitional arrangements.
Source: lowtax
