What does the new VAT registration mean for yacht charters?
The Government of The Bahamas seeks universal compliance of payment of Value Added Tax (VAT) by all entities doing business in The Bahamas, and as a result, all yachts conducting charter trips in Bahamian waters will be required to pay a VAT of 10% beginning 1 July 2022.
Will the VAT be placed on the value of the Charter?
A VAT of 10% will be placed on the value of all charters conducting trips in The Bahamas.
Does the VAT replace the Charter Fee?
Yachts conducting charter trips will still be required to pay the 4% charter Fee.
How do Yacht owners become a VAT registrant business?
Yacht owners should visit revenue.gov.bs/Home to become a VAT registrant business and receive a Bahamian Tax Identification Number (TIN).
How often should Yacht owners conducting charters file their VAT payments?
Yacht owners will need to file their VAT payments quarterly, like all other Bahamian businesses.
Will yacht owners conducting charters be able to charge customers a VAT?
As a VAT registrant, foreign yacht charter operators can now charge VAT to their customers.
Will preexisting contracts signed prior to 1 July 2022 incur the 10% VAT?
No, any yacht charter contracts signed and paid for prior to 1 July 2022 will not incur the 10% VAT.
Where should Charter Yacht Brokers, Managers and Captains direct questions their questions regarding the new VAT updates?
All questions and concerns should be directed to [email protected] or visit revenue.gov.bs/Home for more information.
By C. Burak KOREL
