Bahamas adding 10% VAT to all goods and services provided on Private Islands

[happycamper47]

From Travel Weekly:

The Bahamas plans to charge cruise lines 10% on goods and services provided on the their private islands, according to reports.

According to Bahamas newspaper The Tribune, the government plans to implement the new charge on March 1.

The move would end a nine-year run of the government exempting the private islands from the Bahamas' value added tax (VAT).

https://www.travelweekly.com/Cruise-Travel/Bahamas-tax-cruise-line-private-islands

 

[thanxfornoticin]

Not a surprise. It's a big source of income for Bahamas. At least it went from 12 to 10 a couple years ago!! Value Added Tax always cracked me up - value added to the people collecting it......

 

[Lesverts]

The article reads a bit weird to me.

I can understand the cruise companies having to eat a bit of the tax for people that already booked things on the private islands but wouldn't they just be able to add in the VAT to any new purchases of excursions? And just add in the VAT to anything sold on the island? Not sure why the article says it will make the cruise lines eat a lot of the cost or make the fares go up. Port fees and taxes are a separate line item of your cruise fare contract to begin with.

The Bahamas is almost a no tax state for residents. They collect the vast majority of government revenue from tourist.

 

[randumb0]

The article reads a bit weird to me.

I can understand the cruise companies having to eat a bit of the tax for people that already booked things on the private islands but wouldn't they just be able to add in the VAT to any new purchases of excursions? And just add in the VAT to anything sold on the island? Not sure why the article says it will make the cruise lines eat a lot of the cost or make the fares go up. Port fees and taxes are a separate line item of your cruise fare contract to begin with.

The Bahamas is almost a no tax state for residents. They collect the vast majority of government revenue from tourist.

They will have to eat a lot of tax because yes people pre booked but also this came on short notice. Cruise lines had until February 16th to respond and it takes effect on March 1st. That's not enough time to change your operations, websites and pos systems.