L-R Keith Worrell- VAT Consultant Ministry of Finance- DIR, Tameka Hanna- Vice President, BCA, Leonard Sands - President, BCA
The Bahamian Contractor’s Association during their quarterly luncheon meeting received answers to key questions around changes to the Valued Added Tax (VAT) rate and transitional arrangements which would impact their industry.
Mr. Keith Worrell, VAT Consultant at the Ministry of Finance’s – Department of Inland Revenue, informed attendees that VAT Guides and Rules have been issued to ensure a smooth transition as we move to the new VAT rate.
Mr. Worrell emphasized the uniqueness of the contractor’s situation, because unlike most industries there is a time lapse between when the contract is entered into and the completion of the service. However, special transitional arrangements have been established for contracts entered into prior to July 31, 2018 and scheduled to be completed on or before February 28, 2019. Contractors will not be required to amend the VAT amount charged, for these types of contracts.
The VAT Act, 2014 makes provision for instances where changes to the VAT rate may have occurred.
Mr. Worrell encouraged attendees to maintain proper records in their industry to ensure smooth transactions in all business ventures, especially during the transitional period; where the provision of evidence will be paramount when making application for special consideration, Further, he advised contractors to continue to follow the Ministry of Finance’s Facebook page and the Department of Inland Revenue’s Website at inlandrevenue.finance.gov.bs for updates.