The Bahamas Investor

...we have heard so far is evidence that the greatest need for information is on the part of the consumer as businesses have made it a point of learning as much as they can to date. It’s clear that the upcoming schedule for VAT items and exemptions will be very helpful.” Government intends to publish the first schedule for consideration on January 17. A series of town meetings is planned with the first set tentatively for Exuma next week.......

Value added tax (VAT) Education Team members paid a courtesy call on the Ministry for Grand Bahama September 10. The team is in Grand Bahama to hold a series of Public Education Forums. The first of the series was held yesterday at the Foster B Pestaina Parish Hall at Christ the King Church, Freeport, Grand Bahama, Wednesday. Today’s session will be at the Mt. Zion Baptist Church, West End and the St. Matthew’s Baptist Church, Pelican Point in Ea......

...Grand Bahama is set to benefit greatly through its exemption from value added tax, according to GB Port Authority honorary chairman Sir Jack Hayward. Watch a ZNS Network news report here.......

...Tax reform efforts by the government are gathering speed, as Minister of State for Finance Michael Halkitis looks to introduce a 7.5 per cent value added tax later in the year.......

...on. Tax revenues firmed by $213.2 million (36.3%) to $800.9 million—with a VAT yield of $317.0 million. However, on account of tariff rate reductions which were applied to offset the VAT related increases, taxes on international trade declined by $41.9 million (13.9%) to $259.4 million, as the import and excise tax components decreased by $26.2 million (16.3%) and $17.0 million (12.4%), respectively. The elimination of the hotel occupancy tax disp......

...by $217.4 million (30.2%) to $936.1 million through end-January 2016, with VAT receipts comprising 40.5% of the total at $379.1 million. In contrast, reflecting the decline in several tariff rates to compensate for the new regime, taxes on international trade fell by $40.7 million (12.1%) to $295.4 million, as both import duties and excise taxes decreased. With most property transfer taxes replaced by VAT, other “miscellaneous” taxes contracted by......

...ty and accountability” in business. He said that since the introduction of VAT by the former administration, the government has outsourced its VAT auditing to an international team of auditors, which is costly. “For the first time, we have implemented a strategic plan for the government to transfer those responsibilities to Bahamian professionals. Over the next few years, we will transition to a full team of Bahamian VAT auditors, creating new car......

...to have increased. However, the January 2015 introduction of a broad-based VAT, with a low standard rate and few exemptions, has contributed to fiscal consolidation. Reports of VAT implementation thus far are encouraging, with revenue exceeding expectations. “Near term challenges stemming from the low growth environment underline the importance of implementing past policy recommendations. Specifically, the 2015 Article IV report recommended struct......

...The mission commends the authorities for the introduction of a broad-based VAT on January 1, 2015. This reaffirms their commitment to medium-term fiscal consolidation, and represents a significant step towards boosting credibility and bolstering market confidence. Early indications of VAT performance are encouraging, and the authorities seem on course to achieving the initial revenue targets. The authorities should also advance other revenue measu......

...g to Halkitis, who acknowledged that there has been much debate on whether VAT was the best course of action. “We have had a spirited discussion about VAT alternatives,” he said. “The Ministry of Finance gave serious consideration to the alternatives.” “We have one thing in common when we get to the bottom line. We all appreciate that reform of the fiscal system is necessary.” The government intends to publish guidelines on the proposed reforms th......

...n structures that are tax compliant including trusts and funds. As regards VAT, there is zero rating of financial services provided to persons who are designated non-resident for Exchange Control purposes under the draft VAT legislation. This indicates that both the government and the industry have been responding proactively in an effort to ensure that the financial services sector model remains ahead of the curve in the changing times. How the j......

...ax has gone relatively smoothly and the government continues to refine its VAT rules and procedures. The Bahamas continues to attract significant foreign direct investment (FDI) from various parts of the world. However, there remain significant challenges to investing in the country, including the cost and reliability of electricity, high unemployment combined with a lack of skilled labor, and cumbersome administrative requirements. U.S. and Baham......

...tax breaks including zero-rated corporate tax and various value-added tax (VAT) options, no annual tonnage tax charges and no insurance premium taxes. Vessels registered there are entitled to fly the Red Ensign and have access to all British consulates throughout the world. The downside is that superyachts kept in European Union waters could pay VAT tax from 15-25 per cent of the vessel’s value, depending on the country through which the vessel is......

...Bahamian context.” The majority of financial services will be exempt from VAT, according to Minister Halkitis, but certain fee-based services may fall under the scope of the provisions. As part of its wider goal of comprehensive tax reform, the government will also establish a central revenue agency, eliminate certain customs duties and introduce excise stamps on tobacco products. According to the Minister, the annual revenue of the current tax s......

...has been in discussions with the Ministry of Finance on the application of VAT to the industry. He said that the financial services industry could be either treated as zero rated or exempt, depending on if it is defined as a financial services firm by legislation or regulation, or if it is an export services firm. “We at the policy level are discussing the best way to advance this issue,” Minister Pinder pointed out. “Once Cabinet has approved the......