Super Value owner: We’re ready; I hope other retailers are
Businesses have up to 90 days to comply or be in breach of law
NASSAU, BAHAMAS — The business community will be ready to charge 10 percent value-added tax (VAT) come January 1, according to Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) Chief Executive Officer Waldon Russell.
However, the CEO noted some retailers with significant inventory will need a few weeks to adjust their prices.
I think the business community will be ready to charge the new fee on day one.
– BCCEC CEO Waldon Russell
The Davis administration has passed a new supplementary bill and amendments to the VAT Act that are expected to take effect on January 1.
Minister of Economic Affairs Michael Halkitis said businesses will have up to 90 days after implementation of the 10 percent VAT rate to make changes on price tags to reflect the new rate.
Russell said: “We recently had a webinar with the Department of Inland Revenue and they would have provided us with an overview of the changes in the bill and answered the questions of the participants.
“I think we would have had about 200 participants.”
He added: “I think the business community will be ready to charge the new fee on day one.
“It is going to take some time to reprice items already on the shelves, particularly in large stores where the price is VAT-inclusive. That is going to take another few weeks.
“The ministry has allowed up to 90 days to do that. I think many businesses would need that leeway.”
Russell noted that any businesses not prepared to charge VAT at the new 10 percent rate would be in breach of the law.
Super Value owner Rupert Roberts told Eyewitness News: “We’re ready to touch the button when we close December 31 and reopen January 1 at 7am with 10 percent in our scanners.
“We’re ready. We’re well organized to make all of that happen. I hope other retailers are.”
The changes reduce VAT to 10 percent across the board, but also apply that rate to items that were previously VAT-free under the former administration.
The government has repeatedly stated its case against VAT exemptions, arguing that such provisions ultimately have a detrimental impact on the tax collection effort.
