- The Bahamian government is planning tax reforms that will end the VAT-free status of cruise lines’ private islands.
- The changes are set to take effect from March 1 and aim to create a level playing field for Bahamian providers.
- The tax authorities plan to levy VAT on all goods and services supplied to tourists visiting these private islands at a standard 10 percent rate.
- Private islands such as Royal Caribbean’s Perfect Day destination, Mediterranean Shipping Company’s Ocean Cay, Disney Cruise Line’s Castaway Cay and Lighthouse Point, and Holland America’s Half Moon Cay will be impacted.
- The tax authorities do not have access to commercial records to determine how much revenue could be generated from the changed tax treatment.
- The move is intended to place cruise lines and Bahamian businesses on a level playing field in terms of taxation.
- The cruise industry may request more time to adjust to the changed treatment due to the impact on pricing.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
