Guidance from Bahamas on VAT implementation
The Bahamas Ministry of Finance has said that businesses will not be required to provide a tax identification number when applying to be covered by the value-added tax transitional virtual warehouse arrangement for commercial importers, applications for which must be submitted by October 15, 2014.
The Bahamas Government recently said that it will allow VAT-registered businesses to take advantage of a reduction in customs duties for existing inventory.
Businesses will have to report sales of inventories made before December 31, 2014, and pay duty on items sold at the current rates that are in effect.
The Ministry of Finance has now clarified that in order to make the applications, businesses will not be required to provide a taxpayer identification number, as this information will be requested by the Customs Department afterwards.
A spokesperson for the Ministry said: “We know who all of the large VAT registrants will be. Their enrollment for VAT will be a matter of formality. Customs is likewise familiar with the large importers who are destined to become registrants.”
The Bahamas Ministry of Finance has said that there will be “some leniency” with regards to pricing during the early days of VAT implementation, after retail businesses voiced concerns about the challenges of immediately changing pricing on January 1, 2014.
Source: lowtax- Guidance from Bahamas on VAT implementation
