globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload |
10 October 2018 The Bahamas modifies application of increased 12% VAT rate on certain goods The Bahamian Government in its 2018/19 budget communication initially proposed an increase in the rate of Value Added Tax (VAT) from the 7.5% in effect to 12%. The rate increase became effective 1 July 2018. The Government subsequently announced modifications to its application. Effective 1 August 2018, VAT was removed from all breadbasket items. There were 23 categories of food items included in the list. This was inclusive of: baby cereal, baby food, baby formula, bread, broths, soups, butter, canned fish, cheese, condensed milk, cooking oil, corned beef, evaporated milk, flour, fresh milk, grits, margarine, mayonnaise, mustard, powdered detergent, rice, soap, and tomato paste. Also effective on 1 August 2018, was the application of a zero rate of VAT on prescription medication and most over the counter medication. Over the counter medication included in this listing are inclusive of: aspirin, pain and fever, fluid replacements, cough, cold and allergy medication among others. Document ID: 2018-6188 |
