The Ministry of Finance last night affirmed that construction services in the two Dorian-devastated islands will be VAT-free through June 2021 provided they are fully paid for by end-September.
Confirming that the Minnis Cabinet had yesterday formally approved the extension of key tax breaks for Abaco and Grand Bahama via the Disaster Reconstruction Authority (Special Economic Recovery Zone) (Relief) (Amendment) Order 2021, the Ministry reiterated that construction services remain among the list of tax exempt activities until June 30.
“Construction activities remain a critical item for the recovery process. The Extension Order approved in December provided tax relief on the local sale and importation of construction supplies. The latest amendment order allows for the zero-rating of construction services, which will render these activities VAT free within the zone until June 30, 2021,” said Senator Kwasi Thompson, minister of state for finance.
However, these construction services must be invoiced before June 30 and paid in full by September 30, 2021.
The latest amendment also extends the time allowed for the import of VAT-free vehicles. Replacement vehicles must be purchased and shipped prior to January 31, 2021, representing a one-month extension, and arrive in The Bahamas by end-April 30.
“The Government is listening and responding to the needs of the people. The road to recovery is not an easy one for residents in the islands devastated by Hurricane Dorian, and we are doing everything we can to provide support where we can,” said Mr Thompson.