- The Bahamas will remove VAT on unprepared food and everyday groceries from April 1, 2026.
- The VAT rate on these items will drop from 5% to 0%, covering items like fresh produce, baby food, and uncooked meats.
- Prepared meals, restaurant food, and processed items are not included in this VAT removal.
- This measure is part of broader government efforts to reduce the cost of living, following previous actions like raising the minimum wage and expanding social programs.
- Taxable persons should watch for further guidance on these new tax measures.
Source: opm.gov.bs
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.
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