The Bahamas operates a tax system that relies heavily on import duties and Value Added Tax (VAT) due to the absence of income tax, corporate tax, and capital appreciation tax. Historically, holiday rentals in Harbour Island were not subject to VAT payments. However, this changed in March 2023.
Register their properties: Owners must register their properties in a newly launched online portal.
Registration Deadline: The deadline for registration is April 30, 2023.
Purpose of Registration: This initiative aims to ensure consistent service standards within the short-term rental market and, critically, to enforce tax compliance regarding VAT payment obligations. Essentially, the government wants to collect the VAT due on these rentals.
Guests renting a house in Harbour Island should expect to pay VAT on top of their rental stays.