The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

MANY business licensees in Freeport were eager to learn what they need to do to be VAT compliant as the January 1 implementation date draws near.

In an effort to educate and prepare licensees, the Grand Bahama Port Authority is hosting a three-day VAT training sessions at the Pelican Bay Resort.

The first-day session was held for the retail and commercial sector. Sessions are also planned for the manufacturing and industrial sector on Wednesday.

Keith Worrell, a member of the VAT Team in Grand Bahama, was a key presenter at the session on Tuesday. He gave an overview of the VAT legislation and the impact it will have on businesses.

He also used the opportunity to dispel some of myths and misconceptions that persons have had concerning VAT.

“I think today it was made clear to licensees that VAT is not intrinsically a cost to their business, and that the only thing that may happen is that they may have to incur some administrative costs in terms of learning how to account for VAT.”

Mr Worrell said it is important that the business community understands what VAT is. He noted that most of the concerns raised were about the possible cost associated with VAT.

“We spent a lot of time and laboured on that. At the end of it all, I think that the questions then revolved around more the administrative elements of VAT as opposed to its actual functioning,” he said.

Sarah St George, vice chairman of the Grand Bahama Port Authority, said the issues that affect Freeport and its licensees are unique to the issues in the rest of the Bahamas because of the Hawksbill Creek Agreement.

“There are areas with more VAT exemptions and zero ratings that does not actually simplify the process of it, and in some instances it makes it actually more complicated… and that’s why it is so important to do this locally,” she said.

“In my mind, there are still many questions and whether we get there by January 1, I can’t say yet. I can see it is a huge learning curve all around.”

She said the software on the systems that is going to need to be adapted is quite a major change. “So the more we discuss it and meet on it, the more people are focusing on it, and we can address things well ahead of January,” she said.

Session presenter Darius Roberts of Baha Beach, is a Web/ IT Development Company, said there is software available that businesses can use that will help them to be VAT compliant.

“VAT is not coming, it is here. Grand Bahamians are afraid of it because they believe that VAT will complicate things for their businesses.”

Mr Roberts demonstrated how the Quick Book software could help businesses account for VAT.

“Quick Books has VAT software that can assist businesses with their accounting and bookkeeping functions. It is the same VAT software that has been used for sometime in the United Kingdom,” he said.

“Bahamas Customs has made it clear that they will be going after companies and individuals who are not VAT compliant, and so businesses don’t want to be in a position where Customs is saying they have to audit their business,” he said.

Baha Beach is the partner in the Caribbean for solutions testing for Certiport, which includes Microsoft, Adobe, HP, Intuit QuickBooks, Autodesk, Comp Tia and others. Any entity in the Caribbean looking to certify their students have to get the authorisation license from Baha Beach, which has responsibility for over 200 testing facilities in the Caribbean.