Value Added Tax – Implemented in The Bahamas – January 2015

The Government of The Bahamas has implemented Value Added Tax (“VAT”) effective 01 January 2015. It is mandated by law that VAT be charged upon all invoices issued in The Bahamas in respect of goods and/or services except in the case of a very limited number of exemptions. VAT taxes will be remitted to The Bahamas Government.

VAT charged at 0% re non-residents / 7.5% re residents

The application of VAT is focused upon the domestic economy. Accordingly, services supplied to persons deemed non-resident attract a 0% (nil) rating of VAT. A non-resident is a person carrying on no taxable activity in The Bahamas. The effect of this is that a 0% (nil) rate of VAT will apply to much of the services related to the international financial industry, international business companies and their supporting legal and accounting services.

The applicable rate of VAT charged upon goods or services supplied to a resident is the standard rate of 7.5%. A resident is a person carrying on a taxable or other activity in The Bahamas and includes the Government, and a citizen or permanent resident of The Bahamas.

Our tax identification numbers

Delaney Partners law firm and Delaney Corp our corporate services affiliate are each a VAT Registrant. In compliance with the VAT law, as of January 2015 every invoice issued by either of our Registrants will display the relevant Tax Identification Number. They are as follows:

Delaney Partners – TIN # 100099634

Delaney (Corp.) Bahamas Ltd – TIN # 100174418

We value our business relationship with you and look forward to continuing to serve you. We are happy to answer any question you might have regarding VAT charges on our services rendered. Please contact our Financial Controller, Pamela A Miller CPA (pmiller@delaneypartners.com).

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¹ Value Added Tax Act, 2014