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28 June 2018 Bahamian Department of Inland Revenue releases VAT guides The Department of Inland Revenue in the Bahamas has released a number of general and industry specific value added tax (VAT) guides to the public. These include the Bahamas General VAT Guide, Transitional Arrangements, guidance on Insurance Services, Construction, Retail & Wholesale Sectors, Cash Accounting & Flat Rate Schemes and Transportation of Goods & Passengers. The purpose of the guides is to provide additional clarity on the updates to the VAT Act and outline the transitional provisions. In terms of transitional provisions, the guidance notes provide that where a contract is entered into before 1 July 2018 but the supply of goods or services happens after this date, the higher rate of VAT (i.e., at 12%) would apply. If the contract is entered into prior to 1 July 2018 and the supply of goods or services is now exempt or subject to the zero rate under the new provisions, then a refund or reduction in the VAT payable is due to the customer. Document ID: 2018-5814 |
