Bahamas Cautions Businesses On VAT Compliance

by Mike Godfrey, Tax-News.com, Washington

13 January 2015

Following the introduction of value-added tax (VAT) from January 1, the Bahamas VAT Department has issued a notice reminding businesses of the compliance requirements under the new VAT regime.

The Department noted that while many businesses have complied with the transitional provisions, some VAT-registered businesses are not yet showing inclusive prices or signs warning consumers that VAT will be added to the cost of goods or services. Businesses must show inclusive prices within two months of the introduction of the regime at the latest. They must also include their tax identification number on invoices immediately and a VAT certificate must be visible to customers.

The Department has said that the responsibility for all registrants to collect VAT started on January 1. It also addressed some queries on whether motor gasoline was taxable from January 1, stating that there had been no delay. In this and other cases, the liability to account for VAT existed from January 1, even if VAT was not charged to the customer, it said.

TAGS: compliance | tax | business | value added tax (VAT) | Bahamas | international financial centres (IFC) | goods and services tax (GST) | offshore | services | VAT compliance matters

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