IMPLEMENTATION OF VAT IN THE BAHAMAS

Jan 1, 2015

Value Added Tax was implemented in The Bahamas as of 1st January 2015 with the standard tax rate of 7.5%. The introduction of this tax impacts Intellectual Property services supplied in The Bahamas. Where rights are to be enforced inside The Bahamas, the legal fees will be subject to VAT at 7.5 % unless holders of rights or assets want to select The Bahamas as the governing law jurisdiction. The nature of the system is far-reaching. Unlike other jurisdictions, such as the EU, where goods and services sold to customers outside of the EU are normally not subject to VAT, VAT does apply to IP services sold to customers outside of The Bahamas. For more information, see here.