Back to school VAT holiday begins next Monday

Back to school VAT holiday begins next Monday

NASSAU, BAHAMAS — Government today announced that the Back-to-School VAT holiday will begin next Monday when local businesses are expected to resume their operations.

The Ministry of Finance in a statement noted that the purpose of the tax relief measure, announced during the 2019/2020 budget debate, is to make back to school shopping less expensive for parents while providing support to local businesses throughout The Bahamas.

The Back-to-School VAT Holiday will run from Monday, August 31 to Sunday, September 20, 2020, ahead of the planned reopening of schools in September and will cover a range of locally purchased school supplies, including school uniforms, clothing, backpacks, electronic book readers, and even school snacks.

Imported items are not included under the VAT Holiday and will attract the ordinary border taxes.

The Department of Inland Revenue (DIR) is expected to work with businesses across the country to administer this tax relief measure.

Deputy Prime Minister and Minister of Finance K Peter Turnquest (file photo)

Deputy Prime Minister and Minister of Finance K Peter Turnquest said: “While the country grapples with the ongoing health and economic crisis, the Government will continue to find ways to reduce the financial strain on families and businesses and provide support where we can.

“With the VAT holiday on school supplies, parents and teachers will be able to find some financial relief as they prepare for the reopening of school. Even with the tax breaks, many people will still need the support of the broader community, so we continue to encourage and celebrate those who have been rallying together to support their neighbors, family members, friends and even strangers.”

For his part, Education Minister Jeffrey Lloyd said: “We know parents and teachers across the country are anxious to prepare for the reopening of schools in September, and the transition to virtual school.

Minister of Education Jeffrey Lloyd (file photo)

“Naturally, there are learning tools required for remote learning that were not necessary for inperson learning. The Government has ensured that the VAT Holiday covers traditional school supplies, such as notebooks, folders and other stationary, and digital learning tools such as personal computers, tablets and other related accessories.”

“The Department of Inland Revenue will work with businesses to ensure this tax relief initiative is delivered smoothly. All merchants who are VAT registrants and are licensed to sell back to school supplies will be required to participate. Consumers will benefit from the VAT savings at the cash register,” said Gaynell Rolle, DIR Controller.