Bahamas – VAT begins in 2015 | KPMG | GLOBAL.
Bahamas – VAT begins in 2015
Under the VAT system in the Bahamas, VAT is to be administered and enforced by the Comptroller of VAT (as the head the VAT Department within the Ministry of Finance). Accordingly, there are rules relating to VAT registration, calculations, payments of VAT, as well as other guidance. Furthermore, it is anticipated that the Comptroller of VAT will issue additional guidance.
Under the VAT regime, some dates for action are:
- 13 October 2014 – registration opens
- 30 November 2014 – date for completing mandatory registration
- 1 January 2015 – implementation date of VAT
A standard rate of VAT (7.5%) will apply to all taxable supplies of goods or services, other than those that are subject to a zero rate (0%).
The basic rule is that a supply of services takes place in the Bahamas when the place of business of the supplier is located in the Bahamas. However, there can be exceptions to this rule.
Read a 2014 report [PDF 596 KB] prepared by the KPMG member firm in the Bahamas: Review of the Value Added Tax Bill and Regulations 2014 of The Bahamas