Last night there was a meeting at VAT tax.

First if all what is VAT? 

Value added tax

From Wikipedia, the free encyclopedia

For the UK tax, see Value Added Tax (United Kingdom).

The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax.A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.

The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.

Okay now you have a idea, maybe not? Brian Marie came in a tried to help us understand what this is all about. He really did a pretty good job. It all comes down to, our government here in the Bahamas is hurting for money. We have been using the duty program now for many years. As the world looks on now. They have gotten away from that way of taxing. So if we want to be part of the World Trade. We need to change to the times. So in July 2014 there will be a tax starting up on items bought and sold here in the Bahamas. Plus other things too. Maybe electric,water anything that we need to use here. 

As this is the first time talking about this, we still have many questions and how will it work? 

The way I think of it is at the end. The consumer will be paying the 15% at the end. Mean while the duties will be dropped down a little. This is not a sale tax. 

The example Brian used was like riding a train. 

First you have to buy a ticket. plus 15%

Then very time you stop get off you pass the 15% off to the next person. At the end the government gets it's 15% at the start and the last guy pays the most. I know you are looking at this and saying What are you talking about. I just don't have the time to explain. Maybe down the road?