NASSAU, BAHAMAS – Value added tax relief measures for special economic recovery zones in the Abacos and Grand Bahama will come into effect December 1.
“This time frame is to allow shippers, wholesalers and retailers the opportunity to adjust their databases and point of sale systems to facilitate the VAT free transactions on eligible items,” read a notice from the Ministry of Finance.
It added: “Until then, standard VAT and tax rules remain in place.”
Last week, Dr Minnis announced a new VAT relief policy for the islands and cays ravaged by Hurricane Dorian until June 2020, as part of the Government’s effort to stimulate the economies of those communities.
He made the announcement at separate town hall meetings in Green Turtle Cay and Guana Cay.
The new policy means that individuals and businesses will be exempt from the payment of Value Added Tax on a range of items.
These include: unprepared food of all types, water, fruit and vegetable juice, clothing, cleaning supplies, cots, beds and bedding material, hardware supplies and related building materials, boat engines, landscaping supplies, pest control supplies, electrical generators, farming equipment and supplies, fishing equipment and supplies, manufacturing equipment, protective and safety gear, household furniture, furnishings and appliances, solar panels, mosquito netting, plumbing fixtures and materials, office supplies and equipment, tents, air-conditioning units and other equipment.
VAT on fuel for generators, in areas still without electricity, will also be VAT-free.