A new consumer protection group calling itself Consumer Action Bahamas (CAB) has rung alarm bells, accusing certain businesses of charging value-added tax (VAT) on items whose pricing already includes VAT, and Acting VAT Controller John Rolle says this kind of feedback is welcome.
The group issued a statement urging a tangible response from the VAT Department, whether or not the supposed "double tax" was intentional or not.
"This matter needs to be tangibly addressed by the VAT Unit to warn and/or deal with all registered businesses where double-taxation may be taking place," the group said.
"On behalf of consumers in The Bahamas and for the benefit of the public at large, Consumer Action Bahamas is asking the VAT Unit to publicly address the matter of businesses charging VAT on what are VAT-inclusive prices, which means consumers are being double-taxed," the release read.
CAB attached receipts from four separate businesses which the group purported showed this double taxation, and said, "It is reasonable to believe that this may be happening at other business
establishments throughout the country as well, particularly given how cash register or point of sale systems throughout the country are either being configured or used."
Rolle told Guardian Business that this feedback was positive.
"We welcome this feedback from consumers. They should be properly routed to the VAT Department so that we can warn businesses in the first instance. There is an email address vat@bahamas.gov.bs to which copies of receipts can be sent for our examination," he said.
"Whenever consumers are incorrectly charged VAT on prices that are already inclusive they should be refunded the overpayment. How the breakdown between the VAT and the rest of the price is shown on a receipt can vary slightly, but the total amount charged to the consumer cannot," Rolle explained.
"Unless the businesses have clear signage that explain that the VAT is not included in the price, consumers should insist on paying the quoted price and no more," he added, urging businesses to monitor and make adjustments to receipting systems when pricing errors occur.

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