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.
The VAT elimination on unprepared food takes effect on 1 April 2026.
Fresh fruits and vegetables, baby food, lunch snacks, frozen foods and other groceries – everything except prepared meals sold hot or ready to eat – will be VAT free.
Owner‑occupied duplexes and triplexes will now qualify for the residential property tax exemption, and concessions for first‑time homeowners have been expanded.
Effective 1 September 2025, VAT on medicines, medical supplies, feminine hygiene products and baby and adult diapers was reduced from 10% to 5%.
Feminine hygiene products were made permanently zero‑rated in August 2025.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Bloomberg Tax · about 2 months ago
The Bahamas Prime Minister announced that unprepared food will be zero-rated for VAT effective 1 April 2026. The change applies to all unprepared food items sold within the country.
VatCalc · about 2 months ago
The Bahamas will apply a 0% VAT rate to unprepared essential food items from 1 April 2026, replacing the 5% reduced rate introduced in 2025. This follows a broader VAT reform that lowered the standard rate from 12% to 10% in 2024, aiming to ease cost‑of‑living pressures for consumers.
EWNews · about 2 months ago
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.
Caribbean National Weekly · about 2 months 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.
EWNews · about 2 months 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.
Vertex, Inc. · about 16 hours ago
Mexico’s e‑invoicing regime, governed by the CFDI XML format (Anexo 20, version 4.0), applies universally to all taxpayers and covers B2B, B2C, and B2G transactions with no turnover threshold. The 2026 tax reform tightens authenticity checks, expands SAT enforcement powers, and imposes fines of 5–10 % of invoice value for non‑compliance.
