The Bahamas published the Value Added Tax (Amendment)(No. 2) Act in the Official Gazette on 13 December 2021. One of the key amends of the act is a reduction in the standard VAT rate from 12% to 10% with effect from 1 January 2022. The Department of Inland Revenue has published guidance containing frequently asked questions on the VAT amendments, including confirmation that the 10% rate applies for the sale of goods and services and imports from 1 January 2022. Transitional guidance is also provided, including that for supplies of goods contracted before 1 January 2022 and delivered on or after that date, VAT continues to be payable at 12%. For ongoing supplies of services contracted before 1 January 2022, the VAT rate must be reduced to 10% for services not rendered by 31 December 2021. Further, where services were provided prior to 1 January 2022 but payment was not yet made, the 12% rate still applies.
Source Orbitax
