No Removal of Value Added Tax (VAT) from Heathcare Services

Posted on: December 24, 2015

December 24th, 2015 (Nassau, Bahamas) – In response to a statement appearing in yesterday’s newspaper, the Ministry of Finance advises the public that no proposals have been put forward by the Ministry of Finance to remove the VAT from health care services.

The Ministry is aware that various stakeholders including Bahamas Insurance Association have questioned whether healthcare should be exempt from VAT. The Ministry however has explained to stakeholders that adjustments to the VAT system cannot be made independently of technical advice on how the government can offset any reduction in revenue sources, or advice on how the government can continue to maintain the current low VAT rate. The current system of minimum exemptions also allows health care providers to recover the VAT paid on goods and services used in their operations in a fashion that is fully transparent to consumers.

The benefits from VAT have already increased the government’s financial flexibility, adding the capacity to finance the initial proposed NHI benefits and some healthcare systems strengthening.

The Ministry of Finance is working closely with the NHI secretariat to evaluate proposals that would preserve the financial viability of the scheme as the NHI benefits are increased over time.

For further information, visit the Department of Inland Revenue’s new website at
www.inlandrevenue.finance.gov.bs/, email taxinquiries@bahamas.gov.bs or call (242) 461-8050.



Post a Comment

All News

Exuma and The Cays Education Workshops

March 31, 2017 (Nassau, Bahamas) – The Department of Inland Revenue wishes to inform Taxpayers of the upcoming VAT and Business License Education Workshops that will be hosted on Exuma, April 4, 2017 thru April 7, 2017. The schedule for the workshops are as follows: April 4, 2017 at The Resource Center, Hooper’s Bay, 10:00…

Gladstone Freight Terminal (GFT) Office Temporary re-location

March 6, 2017 (Nassau, Bahamas) – The Department of Inland Revenue wishes to advise the general public of the temporary relocation of our Gladstone Freight Terminal (GFT) office to our main office at The Shops at Carmichael, Carmichael Road. Please note that our regular business operations have not been impacted and our staff remains ready…

Department of Inland Revenue VAT Stamp Portal

February 23, 2017 (Nassau, Bahamas) – The Department of Inland Revenue introduces its VAT Stamp Correspondence Portal. The VAT Stamp Correspondence Portal allows our clients to electronically submit conveyances and other supporting documents (sales agreements and appraisal reports) which are required for the assessment of Value Added Tax on property transfers. Such documents are to…

The Revenue Enhancement Project (REP) Awareness Statement

January 30th, 2017 (Nassau, Bahamas) – Recently, the Ministry of Finance, through its Revenue Enhancement Project (REP), began a process aimed at reducing tax evasion and increasing compliance. This initiative will not raise taxes on anybody – instead, we aim to propagate fairness by improving detection and collection methods for businesses and individuals who are…

Priority List of Tax Enactment

January 19th, 2017 (Nassau, Bahamas) – The Department of Inland Revenue wishes to remind Taxpayers that in accordance with The Financial Administration and Audit (Amendment) Act, 2015 Section 8A, tax payments shall be applied in the following order of priority: Business Licence Act (No. 25 of 2010) Value Added Tax Act, 2014 (No. 32 of…