Bahamas VAT: Value Added Taxes & the Sailor

[s/v Faith]

Begining in July 2014, the Bahamian government is implementing a Value Added Tax.

What is a VAT?

From the Bahamas.gov site;

Value Added Tax (VAT), is an indirect tax which is considered broadly based consumption tax charged on the value added to goods and services.  It applies to almost all goods and services that are imported, bought and sold for use or consumption....

Every place I have visited in the Bahamas since sailing down at Thanksgiving, this has been discussed and no one is I have spoken with is happy about it.

[Tim]

Begining in July 2014, the Bahamian government is implementing a Value Added Tax.

What is a VAT?

From the Bahamas.gov site;



http://www.bahamas.gov.bs/wps/portal/public/VAT%20and%20the%20Consumer/!ut/p/b1/vZTbkqI6GIWfZR7AJkCAcBlABOQkEE43licUEEQ5qU-_7a7ZVXtPzdg3UyRXqVp_vmT9WaFSKqbSejPkx02XX-rN-XOd8uuVBFa-KbIYzZdzgIFgYn6BWVoXXoLkJQB_GBh81bNgYWEMkbXgAA904prYFTTGWTJURMUaeYhKqx_nGgzVMpHtJiBteruk6sPyt20i3HJQaVInDzeUXLNhLTqF1mhmVCWirzlCTAv1adXdSz-NWON4PawTd5ctn8GTM3c0M6MJJ3CeCJWraRnOpc_uRgf6gu-zq4F7AtEGjlIBdlWTYBx6Gm94XcVjrMhn-XiS2xbsgVPHw_q4bx_ysv555zeXeucZBD_r3wi-8Tyi0re2fu7wJXjXlrcQh6Vs7VIdqOQlE_58VJoKqBjAtV88Gv1ZPr3i6VmBEt0tRWeBQIBVZKFNSmCJPu0rng6eoW4XhhXMO9MPDCfoTHcfekTC0myPUPENcAmmBjJTA7mpgcLEQBlODZz6lcrsxED_78fCoNJ8W32Mu-oDfCCBQUiAgGV4DkHEU2GRgPvrzx6VeTSM_dK7F9bWGXeXOFWCpryWjpn6gAu2c5rsjk4prg-qaAtNbdvWVl9Ity3JDye6TJAj7exS7toj7tPFKlMS-aniQWW1YJlEcJ6q52y4g3G_T_y-p0sVzLxKu9TyMWNZujSzzko2tRhcyYZDM_pZNeSKDkllJEMcqukdcrU9m7kzKQq2K3H34zsjfxOGFbBK2vZLbgluoR4E28AO5rTfqbZfGDpNaDso6aUfzO-WoFp25_5r5BkodfUNkOGnBnITA3UwNXBqS_W_b-n_0gf4V9cQhAzNCAjxkHvFj_DCV_zcR2ieuMY1rdBQT9jEeWi2p-541xvzEfZkzR-Imiyaot9nq7WX37pcOXd4NO7PW9xtFRHKZreBkpTn2qhqSW_EpS4r-8e4zxl4lmEbIW3kXDfNtBDHxRxG--oVxASSyL9w3hPFzAYO9ehwbaSfrzPDLDniEXdkjV07k_ywYDwDpYquNqJw0UNcVmAV53a46PldLGxQnhzSAI2pFsxiQjUVGZYm72kjjX6dbDX8Z-If_wCEAD8x/dl4/d5/L2dBISEvZ0FBIS9nQSEh/#

LOL, that explains it  ;D

[s/v Faith]

I am having trouble with the link, so I will continue in this post...

:P

The Bahamian government has been faced with a budget shortfall for years, and has had a couple options... Either reduce services and expenses or raise taxes.  Compliance with import tariffs in a country with 700 separate islands is very difficult, and frankly I am not sure how vat is going to help that but this is the path they have choosen.

I really don't want to go into politics here, I will refrain from sharing my thoughts on how this applies to other governments policies.. I ask everyone please respect our policy on avoiding political discussions also.

  Things are more expensive here.  Most everything you buy is imported, with the vast majority of it coming in from the United States.  Brands you find on shelves are often store brands from big box stores in the US, with some very cool exceptions....  The Bahamas has an agreement with New Zealand that give us some incredible cheeses and butter (although my favorite canned butter has not been found this trip)...

  Many of the stores on the smaller islands are not likely to be "registered VAT" sites, and no one seems to know how that is going to affect the marketplace.

  The government has been going from island to island and holding town meetings about VAT.  They say they are open to reconsider, but I have heard from several folks who say their answer is "ok, no VAT, how then do we cover the shortfall?"

  What does this mean for cruisers?  It is hard to say.

Some import taxes are being repealed.  Since the VAT is collected at the point of sale it is likely that it will be added onto the bill when you check out.  The businesses that pay VAT will have no choice but to collect it, and the ones who do not will likely charge it anyway... 

  Now, the sky is not falling.  Even with an additional 15% the food prices are still relatively reasonable here.  You can live well on a budget just slightly higher then the US.   What I expect we will see is some increase in tax, and a greater incentive to "bring it with you" then we do now.

 

[s/v Faith]

Begining in July 2014, the Bahamian government is implementing a Value Added Tax.

What is a VAT?

From the Bahamas.gov site;



http://www.bahamas.gov.bs/wps/portal/public/VAT%20and%20the%20Consumer/!ut/p/b1/vZTbkqI6GIWfZR7AJkCAcBlABOQkEE43licUEEQ5qU-_7a7ZVXtPzdg3UyRXqVp_vmT9WaFSKqbSejPkx02XX-rN-XOd8uuVBFa-KbIYzZdzgIFgYn6BWVoXXoLkJQB_GBh81bNgYWEMkbXgAA904prYFTTGWTJURMUaeYhKqx_nGgzVMpHtJiBteruk6sPyt20i3HJQaVInDzeUXLNhLTqF1mhmVCWirzlCTAv1adXdSz-NWON4PawTd5ctn8GTM3c0M6MJJ3CeCJWraRnOpc_uRgf6gu-zq4F7AtEGjlIBdlWTYBx6Gm94XcVjrMhn-XiS2xbsgVPHw_q4bx_ysv555zeXeucZBD_r3wi-8Tyi0re2fu7wJXjXlrcQh6Vs7VIdqOQlE_58VJoKqBjAtV88Gv1ZPr3i6VmBEt0tRWeBQIBVZKFNSmCJPu0rng6eoW4XhhXMO9MPDCfoTHcfekTC0myPUPENcAmmBjJTA7mpgcLEQBlODZz6lcrsxED_78fCoNJ8W32Mu-oDfCCBQUiAgGV4DkHEU2GRgPvrzx6VeTSM_dK7F9bWGXeXOFWCpryWjpn6gAu2c5rsjk4prg-qaAtNbdvWVl9Ity3JDye6TJAj7exS7toj7tPFKlMS-aniQWW1YJlEcJ6q52y4g3G_T_y-p0sVzLxKu9TyMWNZujSzzko2tRhcyYZDM_pZNeSKDkllJEMcqukdcrU9m7kzKQq2K3H34zsjfxOGFbBK2vZLbgluoR4E28AO5rTfqbZfGDpNaDso6aUfzO-WoFp25_5r5BkodfUNkOGnBnITA3UwNXBqS_W_b-n_0gf4V9cQhAzNCAjxkHvFj_DCV_zcR2ieuMY1rdBQT9jEeWi2p-541xvzEfZkzR-Imiyaot9nq7WX37pcOXd4NO7PW9xtFRHKZreBkpTn2qhqSW_EpS4r-8e4zxl4lmEbIW3kXDfNtBDHxRxG--oVxASSyL9w3hPFzAYO9ehwbaSfrzPDLDniEXdkjV07k_ywYDwDpYquNqJw0UNcVmAV53a46PldLGxQnhzSAI2pFsxiQjUVGZYm72kjjX6dbDX8Z-If_wCEAD8x/dl4/d5/L2dBISEvZ0FBIS9nQSEh/#

LOL, that explains it  ;D

:). Yea Tim, I was getting that too!  Thanks!

[s/v Faith]

I hope everyone can read this, the long link is compressing the content....

  :-\

[Kettlewell]

Now if they would just lower their entry fees this might be OK--I won't hold my breath. Another argument to sail a shorter boat I guess...

[CharlieJ]

I  didn't find the entry fees that bad. Many foreign ports have entry or harbor fees. Of course, being aboard


a 25 footer helped a good bit.

Doesn't sound as if this VAT will increase prices all that much. I'm not gonna let it stop me from going back first chance I get :D