It has come to the attention of the Minister of Education, Science and Technology that one of the Ministry’s school official disseminated information that is inaccurate and untrue. We wish to clarify this matter and assure the public that the information circulating in the public domain regarding the addition of Value Added Tax (VAT) to school related fees is unequivocally false.
According to the information being circulated, it is purported that VAT will be added to National Examination Fees if not paid before December 31, 2014
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. We wish to confirm that no such charges will be applied and that fees will remain the same after the stated date.
May I also bring to your attention information directly from the Value Added Tax Act, 2014 pertaining to education related services;
Second Schedule (Section 7); Exempt Supplies and Importations Part I, Exempt Supplies of Services states that an exempt supply of service is a supply of, or a transaction comprising –
(4) Education services funded by tuition costs in a course of study as prescribed in regulations.
(8) Any services by a ministry, department, statutory body, agency, local government council, or other entity of Government, in connection with a taxable activity where the consideration for such services is-
a) nominal in amount; or
b) not intended to recover cost of such goods or services.
(9) Services rendered by a daycare business, including the provision of afterschool care.
All of the above are items in the Value Added Tax Act directly related to education.
For further clarification on VAT, I encourage you to review the Act onwww.bahamas.gov.bs
We assure you that the Ministry will do whatever is necessary to ensure that all school officials both public and independent are well informed of the Value Added Tax Act and its implications on educational services.
The Ministry of Education, Science and Technology encourages all parents to pay careful attention to the payment schedule of their respective school(s) and to ensure that all fees are paid before stated deadlines.