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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of Tourism, wishes to advise that effective 1st January, 2015, the Hotel Guest Tax of ten percent (10%) will be repealed under the Hotels Act (Ch. 288) and replaced with the Value Added Tax (VAT) that is being introduced at a rate of seven and a half percent (7.5%).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.