Visitors will save 2.5% on tax on services with new regulation
As of January 1st 2015, visitors to the Islands of The Bahamas will enjoy a reduction in taxes on the services they use. The Ministry of Finance, in conjunction with the Ministry of Tourism, repealed the Hotel Guest Tax of ten percent (10%) and replaced it with a seven and a half percent (7.5%) Value Added Tax (VAT), a two and a half percent (2.5%) saving. The VAT will be charged on hotels and home rentals as well as all other services supplied to guests.
The removal of the Hotel Guest Tax and the introduction of the VAT at a reduced rate is indicative of the government’s determination to make a vacation in The Islands of The Bahamas the best value for money for visitors, allowing them to keep more money in their pocket to spend as they wish. Tourism Minister, the Honorable Obie Wilchcombe said, “Thanks to responsible fiscal management by our government, our Ministry of Finance is are able to reduce the tax that is charged to visitors to make it more affordable to holiday in the Islands of The Bahamas. We are determined to make a Bahamian vacation the best value for money in the world for a holiday”.
In making the announcement the Ministry of Finance stipulated that no operator or owner of holiday accommodations may collect Hotel Guest Tax in The Bahamas as of 1st January, 2015. VAT registrants must make provision to collect the tax for stays already booked for 2015 and any contract executed or reservation made after 31st August, 2014, is considered under the general transitional provision for VAT and as such will be presumed to have made provision for VAT for accommodations commencing on or after 1st January, 2015.
The legislation is very strict as to who may charge and collect the VAT and only VAT Registrants with a Tax Identification Number (TIN) displayed in the holiday accommodation will be allowed to collect the VAT.
About The Islands of The Bahamas
The Islands of The Bahamas have a place in the sun for everyone from Nassau and Paradise Island to Grand Bahama to The Abaco Islands, The Exuma Islands, Harbour Island, Long Island and others. Each island has its own personality and attractions for a variety of vacation styles with some of the world’s best golf, scuba diving, fishing, sailing, boating, as well as, shopping and dining. The destination offers an easily accessible tropical getaway and provides convenience for travelers with pre-clearance through U.S. customs and immigration, and the Bahamian dollar at par with the U.S. dollar. Do everything or do nothing, just remember It’s Better in The Bahamas. For more information on travel packages, activities and accommodations, call 1-800-Bahamas or visit www.Bahamas.com. Look for The Bahamas on the web on Facebook, Twitter and YouTube. To purchase one-of-a-kind items from The Bahamas, visit www.eshopbahamas.com
The Islands of The Bahamas have a place in the sun for everyone from Nassau and Paradise Island to Grand Bahama to The Abaco Islands, The Exuma Islands, Harbour Island, Long Island and others. Each island has its own personality and attractions for a variety of vacation styles with some of the world’s best golf, scuba diving, fishing, sailing, boating, as well as, shopping and dining. The destination offers an easily accessible tropical getaway and provides convenience for travelers with pre-clearance through U.S. customs and immigration, and the Bahamian dollar at par with the U.S. dollar. Do everything or do nothing, just remember It’s Better in The Bahamas. For more information on travel packages, activities and accommodations, call 1-800-Bahamas or visit www.Bahamas.com. Look for The Bahamas on the web on Facebook, Twitter and YouTube. To purchase one-of-a-kind items from The Bahamas, visit www.eshopbahamas.com
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