The Organization for Responsible Governance (ORG) warns that broad VAT exemptions in the Bahamas can undermine fiscal sustainability, fairness, compliance, and public trust. It calls for evidence‑based, transparent policy design, minimal exemptions, targeted social protection, and the implementation of FOIA and whistleblower protections.
ORG urged that VAT exemptions be minimal, evidence‑based, and complemented by targeted social protection mechanisms rather than broad, politically driven changes.
The policy brief was released on 16 January 2026.
ORG suggested implementing FOIA, whistleblower protections, publishing fiscal impact statements, and establishing structured stakeholder consultation protocols.
ORG warns that broad exemptions can disproportionately benefit higher‑income households, reduce revenue reliability, create distortions, and lower pricing transparency.
ORG argues that transparency, achieved through FOIA and public disclosure, builds trust and legitimacy in the tax system.
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Caribbean National Weekly · 5 days ago
The Bahamas Prime Minister announced that VAT on unprepared food will be removed, effective 1 April 2026, bringing the rate to 0%. The announcement also includes a reduction of the overall VAT rate from 12% to 10%, aiming to ease the cost of living for Bahamian households.
Eye Witness News · 7 days ago
The Bahamian government has announced that from 1 April 2026, VAT on unprepared food will be reduced from 5% to 0%, covering items such as fresh produce, baby food, snacks and frozen foods. Additionally, owner‑occupied duplexes and triplexes will qualify for a residential property tax exemption, expanding earlier property‑tax relief measures.
EWNews · 7 days ago
The Bahamas will remove VAT from all food items previously taxed at 5% effective April 1 2026. The zero‑rate will cover unprepared groceries such as fresh produce, baby food, frozen foods, meats, staples, milk and eggs, but excludes prepared meals and restaurant food. The change aims to ease cost‑of‑living pressures.
Avalara · about 18 hours ago
Avalara’s blog outlines the 2026 sales tax holiday schedule across the United States, detailing dates, exempt product categories, and state‑specific rules. The post highlights key holidays in Alabama, Arkansas, Connecticut, Florida, and other states, noting price caps, local tax considerations, and the need for retailers to update POS systems.
Bloomberg Tax · 3 days ago
Chile's tax authority issued Letter No. 24 on Jan. 7 clarifying that VAT payers receiving taxable services from nonresident providers must issue purchase invoices and pay VAT. The letter also requires retroactive invoicing if invoices are not issued in the same tax period as the remuneration. These guidance rules affect Chilean businesses dealing with foreign service providers.
Fonoa · 4 days ago
Mexico’s tax authority, SAT, has issued Rule 2.9.21 under RMF 2026, mandating digital platforms to provide real‑time, permanent online access to transaction records. The rule requires next‑day data availability, a five‑year searchable archive, and a formal request by April 30 2026, with detailed data obligations for both service providers and intermediary platforms.
