The Bahamas increases its VAT gently

The Government of the Bahamas has announced an increase in the VAT rate in all sectors, effective 1 July 2018. VAT thus rose from 7.5 % to 12 %.

To enable all affected tourism stakeholders to gradually integrate this rate change, the Government of the Bahamas is implementing a 12-month transition period with all tourism industry stakeholders and their partners.

Hotels/resorts, tour operators, individual receptions and groups based in the Bahamas and working with external partners in international markets will benefit from this development, namely :

All contracts signed before 30 September 2018, as well as all reservations for individual stays made until 30 September 2018, for stays up to 30 June 2019, will continue to show a VAT rate of 7.5 %.

Similarly, for groups, any group booked before 31 July 2018 for subsequent stays, even after 30 June 2019, will include a VAT rate of 7.5 %.