2019/20 Budget Communication Final Budget Communication | Page 38

We are, however, mindful of the uneven playing field that this has created concerning
hotels and have moved to level the playing field. As such, all online marketplaces that advertise
and facilitate vacation rentals in The Bahamas will now be required to pay VAT on their rental and
related sales in The Bahamas.
Thus, companies such as Airbnb, HomeAway, and all such marketplaces with short-
term rentals in The Bahamas will be required to pay VAT. I can advise today that some of these
online marketplaces have already become VAT registrants and have been paying VAT, and we are
in the process of ensuring that the outstanding e-commerce service providers are made compliant.
Currently, the VAT Act, 2014 states that all e-commerce services provided for the use,
benefit, or advantage of persons within The Bahamas are a taxable supply, even if the providing
company is domiciled outside of The Bahamas.
This therefore captures all electronic service
providers domiciled outside of The Bahamas that provide services to persons within The Bahamas,
such as but not limited to Airbnb, HomeAway, VRBO, etc.
In another revenue raising measure, we will increase cruising permit fees from $150
on boats up to 34’ and $300 on boats 35’ and over, to a set of rates based on size and length of stay
ranging from $150 per 3 months to $4,000 per year. These rates will become effective January 1st
2020, so as to allow a transition period for the boating industry.
I wish to note also that we will be introducing the online portal for electronic payments
for both cruising permits and eventually for the charter fee. This will not only make boating in our
waters more convenient, but also help to secure more revenue via increased compliance as a result
of the enhanced efficiency the online portal will bring.
iv.
Enhancing the Ease of Doing Business
Mr. Speaker,
A number of the tax measures contained in the 2019/20 Budget will help to facilitate
the ease of doing business in The Bahamas. These are specifically associated with amendments to
the Business Licence Act, which will allow for flexible dates for the submission and issuance of
Business Licences. Thus, as opposed to being restricted to an application deadline of January 31,
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