Bahamas Tax Agency Issues Advance VAT Ruling on Professional Services

The Bahamian Department of Inland Revenue Oct. 31 issued Advance VAT Ruling No. 01/2023, clarifying the VAT treatment on the provision of professional services under various scenarios. The taxpayer provided audit, accounting, financial advisory, tax, and consulting and risk advisory services, and sought clarification on its taxability. The advance ruling clarified that: 1) supplying accounting or similar services is treated as a zero-rated export when supplied from a business located within the country to a recipient outside; 2) the standard VAT rate applies to the recipient using or obtaining the benefit or advantage of the services within the country; 3) ...