PM’s 2014-2015 Budget Communication in full
Thursday, May 29th, 2014 | Filed Under: News & Press...r, we will be eliminating the Hotel Occupancy Tax on implementation of the VAT. Indeed the VAT will impose a lower effective levy on accommodations than the current 10 percent room tax. Being able to streamline exemptions and position the VAT rate much lower than in the White Paper, the Government is not announcing any wide-scale reduction in import duties and excise taxes at this time. Based on the revenue performance of VAT early next year, the......
Halkitis remarks on VAT Bill – page 3
Wednesday, August 20th, 2014 | Filed Under: News & Press...electricity to be exempt, BEC would not charge consumers the 7.5 per cent VAT but, as VAT on its inputs would not be creditable, it would pass on the equivalent of 6.2 per cent of VAT in the form of higher electricity prices. BEC’s commercial customers would be particular hard hit as they would face higher electricity prices and would have no input VAT to claim as a credit. Their own selling prices, and the VAT that they charge, would also be hig......
Halkitis remarks on VAT Bill – page 2
Wednesday, August 20th, 2014 | Filed Under: News & Press...m in order to secure the successful introduction and implementation of the VAT. A VAT Appeal Commission will adjudicate on tax matters and appeals will be possible to the Supreme Court on matters of law. There will be one single rate of VAT at 7.5 per cent across the board. As is done around the world, exports will be zero-rated, thus allowing exporters to claim credits for VAT paid on inputs and thereby maintaining their international competitive......
VAT in the spotlight
Thursday, July 23rd, 2015 | Filed Under: Features...VAT Appeals Tribunal for businesses that may have a complaint against the VAT Unit. The VAT Department headed by the VAT comptroller is responsible for administering the tax. Eventually there will be a merger between the VAT Department and the Department of Inland Revenue to form the Central Revenue Administration (CRA), which will have ultimate responsibility for VAT and some of the other tax revenue streams. Q: What are the obligations and pena......
VAT Department preparing revised guides
Monday, November 17th, 2014 | Filed Under: News & Press...mp tax on conveyances is reduced or eliminated. Hotels can begin including VAT in 2015 reservation bookings. The Ministry of Finance and the VAT Department have worked diligently to address queries by hotel operators on how to transition from the hotel occupancy tax to VAT. As of January 2015 all stays in hotels, and holiday rental properties will be subject to VAT instead of the room tax. “We have worked with BHTA (Bahamas Hotel and Tourism Assoc......
Ministry of Finance clarifies treatment of VAT on pre-existing contracts
Wednesday, September 10th, 2014 | Filed Under: News & Press...l not have to be rewritten, even though suppliers will have to account for VAT on such revenues. VAT will have to be assessed on the portion of supplies made on or after January 1, 2015. If the contracts do not already make provision for VAT, the law empowers suppliers to charge VAT through the enabling provision above. Supplemental bills may also be issued if necessary. The transitional provision in section 98.(3) of the Act also makes clear that......
Ministry of Finance releases insurance industry VAT guide
Tuesday, April 21st, 2015 | Filed Under: News & Press...insurance industry guidance note, as well as other sector guides, on the government’s website at www.bahamas.gov.bs/VAT. For more information contact the VAT Department at vat@bahamas.gov.bs or call VAT Client Services at (242)-225-7280.......
PM delivers Mid-Year Budget Communication
Thursday, February 13th, 2014 | Filed Under: News & Press...a number of instances, where appropriate and consistent with the intent of VAT, these useful exchanges have resulted in modifications to the proposed VAT law that will soon be tabled in Parliament. I would also mention the very constructive dialogue that I have had with representatives of the Coalition for Responsible Taxation. As is widely known, the Coalition is desirous of commissioning additional in-depth analysis of the VAT option, along with......
VAT forum in GB – photos
Friday, September 12th, 2014 | Filed Under: News & Press...s including primarily: What is VAT?; What are the Benefits of Implementing VAT?; What will be the VAT Rate? Educational forums are also scheduled for the rest of the week. Pictured: VAT Team Member Keith Worrell (left) addresses the forum at the Foster B. Pestaina Parish Hall, September 10. (BIS Photos/Vandyke Hepburn) Pictured: VAT Team Member and Financial Secretary John Rolle addresses the forum. (BIS Photos/Vandyke Hepburn) Pictured: VAT Educa......
Government sets up VAT Appeal Commission
Monday, January 26th, 2015 | Filed Under: News & Press...al Commission. The VAT Appeal Commission will operate independently of the VAT Department and the Ministry of Finance. If a VAT registrant is unhappy with any decision made by the VAT Comptroller, they may lodge an appeal with the commission. An appellant who is aggrieved by a decision of the commission may appeal the decision, but on matters of law only, to the Supreme Court. The timing of the appointment of the commission is critical at this jun......
Halkitis remarks on VAT Bill
Wednesday, August 20th, 2014 | Filed Under: News & Press...in these areas; and Updating Honourable Members on progress to-date on the VAT implementation plan and our state of readiness for VAT introduction on January 1 of next year. The Government’s National Development Plan Mr. Speaker, The VAT Bill before us is about the introduction of a new broad-based tax on consumption in The Bahamas. However, it is critically important to properly situate this initiative in the broader context of the Government’s o......
Tourist tax free shopping scheme launches in August
Wednesday, July 15th, 2015 | Filed Under: News & Press...rtment. With the introduction of the standardized electronic platform, the VAT Department is now opening up participation in the tax free or “VAT off” scheme to all qualifying businesses that sell qualifying goods. In the interim period since January, only stores that made at least half of their sales to tourists were authorized to participate. The draft rules to govern the modified scheme can be located on the VAT Department ’s website. “There ar......
VAT legislation “imminent”
Thursday, October 24th, 2013 | Filed Under: News & Press...allows you to run your business better.” As the countdown continues to the VAT implementation date, the government is working with the Bahamas Institute of Chartered Accountants to deliver training, workshops and seminars throughout the country. Representing the private sector, the BCCEC has formed a coalition for tax reform that will report to government. Delivering the opening address at yesterday’s event, BCCEC CEO Edison Sumner said: “We want......
Financial secretary holds VAT forum
Friday, January 31st, 2014 | Filed Under: News & Press...ivity, to whether rent paid on housing for an ex-pat staff member would be VAT-able. “In both of those instances, we were able to reassure the financial services industry that VAT would not apply,” said Rolle. There was a clarion call to simplify the language in draft legislation and accompanying guide. The financial secretary said explanatory material was being developed to address those concerns. “We were really pleased with the turnout and also......
Bahamas lowers proposed VAT rate
Monday, June 2nd, 2014 | Filed Under: News & Press...onetary Fund, a private sector company commissioned to provide a report on VAT impacts, and the advice of two New Zealand VAT experts. The Government agreed with the recommendations that the economy is too fragile to sustain the 15 percent headline rate previously proposed. In addition, taking on advice from the New Zealand experts, it has agreed that providing numerous exemptions would be an ineffective method of administering tax relief for thos......