Sailorbob
5/10/2016 17:43 EST
Hi all,
Could anyone tell me if Uk citizens (non-resident Bahamians) are VAT exempt ? Or if VAT has to be paid on a major purchase such as a boat, can one re-claim the VAT at a later date ?
Thanks,
Sailor bob
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rahmank
5/10/2016 18:10 EST
Hi Sailobob
VAT here is very much like VAT in UK. Why should you feel anyone living here would be exempt? If you wish to export items from here, then you could reclaim VAT, but if you buy a property here, wtf? If youi bought a boat in UK would it be VAT exempt?
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Sailorbob
5/11/2016 02:02 EST
Hi rahmank,
Thanks for the reply, I didn't say I was living in the Bahamas !! I was asking if the question of VAT exemption for visitors.
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mjahrens
5/11/2016 08:16 EST
Hello Sailor Bob
Yes there are VAT exemptions. In areas of high volume visitor traffic where most sales are to visitors, the govt has set up VAT exemption zones. I think all of these coincide with duty free zones. You can get a refund on the spot or at ports or the airports. Unfortunately, there is no exemption for hotels etc in tourist spots even though this meets the definition!
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breija
5/12/2016 00:00 EST
There are only a few VAT exemptions for tourists shopping at "duty/tax free" stores, when they show their onward tickets. For purchases such as boats, you will have to pay VAT. That said, if you buy a boat here, you will also have to pay the landed/Duty included costs. So, unless you intend to keep the boat here, there is no sense in purchasing it here, because the duties + VAT are assessed. If you are simply bringing a boat here to use while you are on vacation, you are better off to purchase in the US so you do not have to pay duties.
If you are living here temporarily, you can get a temporary importation, which allows you to have the "vehicle" here duty free for up to 2 years (I Think), after which you would have to pay the duties.
Hope this helps.
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breija
5/12/2016 00:01 EST
PS Sailor Bob,
Vat has nothing to do with citizenship or residency. It is all about what has been purchased. If you are purchasing and using in the Bahamas you must pay VAT on top of the landed cost.
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dolfie
5/12/2016 18:07 EST
As far as VAT, everyone as end user should pay VAT, that is the principle of the Value Added Tax.
When you are not the end user and are subject of the VAT registry, the VAT goes on your credit side, while your sales go to the debit side.
The balance is what you are pay or to be refunded for.
VAT here is prettty new and not balanced yet, so yes you might pay VAT on about all non exempted items and even on bills that have the import tax calculated in it.
As I understand, it is just a way to get the Bahamas a 7,5% bonus.
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dolfie
5/12/2016 18:07 EST
As far as VAT, everyone as end user should pay VAT, that is the principle of the Value Added Tax.
When you are not the end user and are subject of the VAT registry, the VAT goes on your credit side, while your sales go to the debit side.
The balance is what you are pay or to be refunded for.
VAT here is prettty new and not balanced yet, so yes you might pay VAT on about all non exempted items and even on bills that have the import tax calculated in it.
As I understand, it is just a way to get the Bahamas a 7,5% bonus.
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rahmank
5/12/2016 20:54 EST
Has anyone considered that VAT is actually a good thing? It incentivises the government to encourage economic activity.
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dolfie
5/12/2016 21:09 EST
More tax is never a good thing without proper consideration if the taxpayers are able to sustain it.
In the Bahamas there is still a long way to go.
Your stimulation works when different %'s are applied and switched through different groups of activities. The needy go for less VAT.
I have worked with international VAT systems where 6, 10, 15, 16, 21, 25 and 33 % were applied.
Different from here is that these taxes were no taxes ON taxes as we experience now.
To reform a conventional tax system to a VAT system takes time and consideration with all the parties involved. That is the way to go.
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VATlady
5/13/2016 08:06 EST
If the property will be exported, then you can arrange to purchase it zero-rated. You would need to provide evidence of export. The shops on Bay Street in Nassau are able to not charge the VAT because they obtain evidence of export at the time of sale to non-residents/visitors. However, if you are resident on the island (e.g. living here under a work permit) then such sales are not eligible for zero-rating.
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