Bahamas Business License Bill 2023
February 2025he most significant tax news in the Bahamas for 2025 revolves around a major change to their Value Added Tax (VAT) system:
Reduction of VAT on Food Items:
Effective April 1, 2025, the VAT rate on basic foodstuffs sold in food stores will be reduced by 50%, from 10% to 5%.
This applies to a wide range of items, including:
Fresh fruits and vegetables
Baby food
Lunch snacks
Frozen foods
Exclusions: Prepared foods (like those in restaurants or ready-to-eat meals) will not be subject to this reduced rate.
Rationale: This move aims to alleviate the burden of rising food prices on Bahamian families.
Prime Minister Philip Davis acknowledged the impact of high food costs and emphasized that this reduction will make a difference for those with tight budgets.
Fiscal Implications: Despite the reduction, the government assures that this change will not impact their fiscal targets for 2025.
Why this is important:
Cost of Living: This change directly addresses concerns about the rising cost of living in the Bahamas, particularly regarding essential food items.
Impact on Businesses: Food stores and merchants will need to adjust their pricing systems to reflect the new VAT rate.
Consumer Impact: Bahamian consumers can expect to see lower prices on a range of everyday food items.
Where to find more information:
Official Government Sources: Keep an eye on the official website of the Bahamian government for any further announcements or details.
News Outlets: Follow local news sources in the Bahamas for updates and analysis on this tax change.
This VAT reduction on food items is undoubtedly the most significant tax news in the Bahamas for 2025 so far.
It reflects the government's efforts to address cost-of-living challenges and provide some relief to its citizens.
Bahamas Business License Bill 2023
July 2023The Bahamas government has published the Business License Bill 2023, which was presented along with the country's budget for 2023/24.
The Bill repeals and replaces the Business License Act 2010, establishing new rules for the Business License Tax.
Among other things, this includes a new rate schedule and an expanded scope of taxable turnover, notably covering the turnover of International Business Companies (IBCs) earned outside the Bahamas.
Bahamas to Introduce V.A.T.
September 2013The Bahamas government has announced introduction of V.A.T. regime starting July 1, 2014.
The standard V.A.T. rate will be 15% with a reduced 10% rate applying to hotel services.
Zero rate will apply inter alia on export, financial services , agriculture and social services.
The threshold for V.A.T. registration will be BSD (Bahamas Dollar ) 50,000.
Bahamas with a land area of 13,943 km2 has a population of about 347,000 people, about 70% of them living in Nassau the capital city.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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