Value Added Tax (VAT) Increase Information and Updates

Value Added Tax (VAT) Increase 

Pursuant to the Value Added Tax Act, 2014, which came into force in the Commonwealth of The Bahamas on January 1, 2015, legal fees and disbursements incurred in a matter or transaction are either exempt or subject to a value added tax (VAT) chargeable at a zero percent rate (0%) or at a standard rate. Pursuant to the Value Added Tax (Amendment) Act, 2018, effective July 1, 2018 the standard rate has increased from seven and one half per cent (7.5%) to twelve percent (12%). VAT is added to our invoices for legal fees and disbursements at the applicable rate unless the services and disbursements are exempt. For any queries you may have in this regard, please contact Mr. Adrian Edgecombe, CA at afedgecombe@mckinney.com.bs.