Press Statement on the SERZ Order Zero Rating on Construction Services

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From: Bahamas Information services

We are aware that some concerns have arisen over the extension of the SERZ Order in relation to Abaco, the Abaco Cays, Grand Bahamas Island, Sweetings Cay, Deep Water Cay and Water Cay; in particular, as it relates to the zero-rating on construction services. Vat and Duty exemptions have been extended to December 1, 2022, for Household furniture, furnishings and appliances, hardware supplies, building materials, electrical fixtures and materials, plumbing fixtures and materials.

It should be noted that the vast majority of persons in the impacted areas in repairing their property will purchase materials and employ labour to effect the repairs. With the extension of SERZ Order, those persons will not be affected because building materials will remain tax free and VAT is not charged on labour in these circumstances.

The removal of the zero-rating on construction services is expected to impact a minority of cases, mostly high-end properties. The Ministry of Finance will continue to process applications for relief under the SERZ on a case by case basis and consider any application for special consideration on its merits.