The Tribune

The Department of Inland Revenue (DIR) has moved to answer contractors' concerns over the VAT rate increase and the extended transition period provided to the industry.

Keith Worrell, a VAT consultant with the Department, informed attendees at the Bahamian Contractors Association's (BCA) quarterly luncheon meeting that guidelines and rules have been issued to ensure a smooth transition to the new 12 percent rate.

He emphasised that the government had taken into account the time lapse between when a construction contract is entered into and the work completed - something he described as unique to the construction industry.

Special transition arrangements have been established for construction contracts entered into prior to July 31, 2018, and which are scheduled to be completed on or before February 28, 2019. Contractors will not be required to amend the VAT amount charged for these types of contracts, meaning it will stay at the previous 7.5 percent rate.

Mr Worrell encouraged contractors to maintain proper records to ensure smooth transactions in all business ventures, especially during the VAT transition period. He added that the provision of evidence will be key when making applications for special consideration.

He also advised contractors to follow the Ministry of Finance's Facebook page, and the Department of Inland Revenue's website at inlandrevenue.finance.gov.bs, for updates.