The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WITH some in the real estate sector exploring the potential for added business opportunities under a Value-Added Tax (VAT) system, the Bahamas Real Estate Association’s (BREA) president says it is aiming to educate its membership about the impact of tax reform.

Franon Wilson said his development firm, Arawak Homes, like others was researching the VAT system and its potential impact on the firm’s business model.

Regarding BREA’s membership as a whole, Mr Wilson said the topic would likely be one of the focal points of the organisation’s second inter-island Webinar.

“We are in the process of our continuing education programme, where we see that as a topic which we want to have included in our second Webinar,” he explained.

“All members throughout the Bahamas will have the opportunity to take part in the conversation. It’s something we are working on to present to our members to make sure everyone understands what is coming.

“Some members have asked about it, wanting to look at possible business opportunities; to see if any opportunities are there as a result of VAT to look to do any additional deals or relationship building as result of that.

“Right now, members are, like Arawak Homes, speaking to individuals and learning about it on their own. From BREA’s perspective, we see it as an opportunity to get the resources to help educate our chapter as a whole, and to make sure everyone has an opportunity to hear and learn about it,” said Mr Wilson.

he Government is proposing to implement a Value Added Tax (VAT) on July 1, 2014, at a rate of 15 per cent, while the hotel industry would be subject to a lower 10 per cent rate. All businesses will come under VAT, except those those with an annual turnover of $50,000 or less.