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VALUE ADDED TAX ON RENTALS
Guests often ask how taxes work when booking vacation homes in The Bahamas. The Bahamian government applies value added tax on rentals at Bahamas to most goods and services. This includes hotel rooms, villas, and all types of Harbour Island rentals. The standard VAT rate is 10 percent, and this rate applies nationwide. When you reserve a property, VAT appears on top of the base rental price you see online. Property owners, managers, or rental agencies are responsible for collecting this tax. They must also send the VAT to the Bahamian tax authorities according to local regulations.
Your quote or invoice usually displays a clear breakdown. You will see the nightly rate, any service or cleaning fees, and a separate VAT line. This structure helps guests understand how the tax affects the final price. Because of this transparency, guests booking Harbour Island rentals know exactly what they are paying before they confirm their stay.
It is important to know that VAT only applies to services provided within The Bahamas. For example, if you use a concierge service or booking platform based in the United States, those specific services are not subject to the value added tax on rentals at Bahamas. However, any service performed in The Bahamas during your stay remains taxable. This includes housekeeping, on-site support, and most services linked to your villa or vacation home.
Therefore, guests should expect VAT to appear as part of the final cost of their booking. This applies to all short-term accommodations on the islands. Understanding how VAT works makes it easier to compare options and plan a budget for your trip. In summary, Harbour Island rentals always include VAT, and this tax forms a normal and required part of the total price. By knowing these rules, guests can plan ahead with confidence and enjoy a smoother experience during their island stay.