Bahamas VAT / Sales Tax
Detailed vat / sales tax rates and rules for Bahamas in 2026.
The Bahamas introduced VAT in January 2015 at 7.5%, which was increased to 12% in 2018 and subsequently reduced to 10% in 2022. The VAT applies to most goods and services. Essential items including breadbasket food items, medicine, and educational supplies are zero-rated. Financial services, insurance, medical services, and residential rental are exempt. Businesses with annual turnover exceeding BSD 100,000 must register for VAT. The government also levies significant import duties (0-45%) which are a major revenue source.
Standard Rate
10%
Registration Threshold
Annual turnover exceeding BSD 100,000
Reduced Rates
How Bahamas VAT / Sales Tax compares
Bahamas’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and North America’s regional average of 10.4%.
