The Bahamas Financial Services Board (BFSB), in collaboration with the Association of International Banks & Trust Companies in The Bahamas (AIBT), today released VAT FAQs for the financial services industry.

CEO Aliya Allen noted that these were prepared jointly with AIBT, and approved by the Financial Secretary and the [VAT Department]( of the Ministry of Finance (MOF). The FAQs contain key policy understandings, including the waiver of reporting of the value of zero rated taxable supplies and no requirement to impute the value of imports attributable to the making of zero-rated taxable supplies. There is also some clarification for domestic banks with mixed supplies, financial and corporate services providers and asset managers.

BFSB encourages members to avail themselves of the mechanisms in the VAT legislation to seek VAT rulings where necessary; and, of course, to consult with specialist advisors for scenario specific questions.

Ms. Allen says, *”The Financial Secretary and the VAT Department are to be commended for adopting a pragmatic approach on many of the issues included in the FAQs and for working in a very cooperative manner with BFSB and AIBT.”* She added, *”We fully intend to continue the engagement with the MOF team as issues arise that are brought forward by members.”*