Bahamian Government Value Added Tax (VAT) Increasing to 12% on July 1, 2018

The Bahamian Government recently announced a 4.5% increase to the Value Added Tax (VAT) which is added to the price of most goods and services purchased ashore in The Bahamas from 7.5% to 12% on July 1st. As a result, effective July 1, 2018, cruise passengers will begin to notice the 12% VAT added to purchases made ashore in The Bahamas.

With regard to Disney Cruise Line sailings, this new tax will affect all passengers sailing to Nassau and Disney’s Castaway Cay. Although the Disney Cruise Line fleet sails under the Bahamian flag, the Value Added Tax will not apply to shipboard purchases.

Costs incurred on certain components of Disney Cruise Line Port Adventures are also subject to this VAT and guest should expect a slight increase in the total cost of these excursions. It is important to keep in mind, this is a tax from the Bahamian Government, and not a price increase by Disney Cruise Line.

Value Added Tax (VAT) was introduced in The Bahamas in January 2015 as part of a broader reform of the tax system. The broad based consumption tax is applied to almost all goods and services that are imported, bought and sold for use in The Bahamas.

Additional details on The Bahamas VAT can be found on the Bahamian Department of Island Revenue website.

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