Holiday Accommodations VAT Notice

The Ministry of Finance, in conjunction with the Ministry of Tourism, wishes to advise that effective 1st January, 2015, the Hotel Guest Tax of ten percent (10%) will be repealed under the Hotels Act (Ch. 288) and replaced with the Value Added Tax (VAT) that is being introduced at a rate of seven and a half percent (7.5%). The VAT will be charged on hotels and home rentals as well as all other services supplied to guests. Also be advised that no operator or owner of holiday accommodations should 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. Please note that any contract executed or reservation made after 31st August, 2014, will be 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. Only VAT Registrants with a Tax Identification Number (TIN) displayed in the holiday accommodation will be allowed to collect the VAT.

Please direct queries to:

Mrs. Geneva Cooper
Sr. Director/Chief Licensing Officer
The Bahamas Ministry of Tourism
2nd Floor Centreville House
2nd Terrace West, Collins Ave.
P.O. Box N-3701 Nassau, Bahamas
Tel: (242) 397-2726
Fax: (242) 326-2014
Email: gcooper@bahamas.com

Visit www.bahamas.gov.bs/vat for further updates.