Bahamas Government finalises VAT applied to yacht charter
11 Jan 2023
In recent developments, the Bahamas Department of Inland Revenue is now prepared to collect the new VAT (Value-Added Tax) payments and submissions from all foreign yacht charters conducted in The Bahamas. This follows the introduction of a new tax rate of 10% VAT on 1 July 2022, requiring all foreign-flagged charter yachts to pay this rate on the vaIue of the charter contract.
Historically, charters conducted in Bahamian waters have been subject to a port tax of 4% of the value of the charter contract, which was paid to the port department. This tax will remain in place, meaning that the total tax cost is now 14% of the value of the charter contract. However, this is still relatively low compared to taxes on charters in Western Europe, which range between 13% and 22%.
The revenue generated from this new tax on yacht charter will support local employment, development, and infrastructure improvements in the Bahamas, including Hurricane Hole on Paradise Island and the opening of Nassau Harbour, as well as three new facilities in Abaco, Harbour Island and Eleuthera. Earlier this year, Silent-Resorts and EcoIsland Development announced Club Ki’ama Bahamas, an equity club set to offer highly sustainable solar residences and fuel-efficient solar yachts, as well as Club Ki’ama which is located within the new Ki’ama Bahamas enclave on Elizabeth Island.
Ocean Independence is proud to represent a superb range of vessels for charter in the Bahamas. Among these is the superb tri-deck Benetti COOL BREEZE, which accommodates 10 guests in 5 staterooms. The yacht's fantastic crew, which includes an experienced Captain and chef team, have received consistently outstanding reviews. She also offers a comfortable Pursuit tender and water toys to ensure an unforgettable charter experience. For a limited time, COOL BREEZE is offering a discounted rate to offset the new 10% VAT in the Bahamas for January and February bookings. You can also secure this same ‘early bird’ discount for your summer holiday by confirming your booking by February 28, 2023.
Newly marketed in the Bahamas region, the 33m Mangusta Gransport DOPAMINE boasts a modern flair. Recently, she has been offering nearly $30,000 in savings with a weekly rate reduction and reduced delivery fee. A group of two to eight guests can enjoy the benefits of speed, a high ratio of remarkable crew to guests, five-star cuisine and memorable Bahamian experiences.