Mario's not yet charging VAT - and says 10 per cent tax on receipts is actually gratuity

As of Wednesday, January 7, 2015

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

MARIO’S Bowling and Entertainment Palace has not charged value added tax on its goods and services since the new tax was implemented on January 1 even though it is a VAT registrant.

Leslia Miller-Brice, marketing director, told The Tribune that the company was not ready to implement the new tax, and hoped to be fully compliant by next week. Mario’s is a family business owned by Leslie Miller, PLP MP for Tall Pines.

Mrs Miller-Brice was contacted after some customers queried a 10 per cent “tax total” line item on the company’s receipts. Some questioned if the company was overcharging on VAT.

However, Mrs Miller-Brice explained that the current tax line item on receipts is charged for gratuity not VAT.

“I don’t want to start (charging VAT) and then have to go back in to fix it and make changes like what’s going on now,” she said, “so we’re working on it, and by next week it should be on there.

“When we have it set up properly we will start, and if the government wants to fine us for the first two weeks when we didn’t charge it, we will have to deal with that.”

According to the VAT Regulations 2014, there is a fine of up to $50,000 or a prison term of up to two years for “wilfully” evading VAT; improper collection and advertisement of VAT; impeding the comptroller or a VAT officer in the

administration of the VAT Act or for failure to comply with a requirement of confidentiality.

According to the regulations, someone can be fined $1,000 for each false statement on VAT. Additionally, VAT registrants who violate VAT-inclusive pricing could face as much as $100,000 in fines, up to a year in prison, or both.

When asked her thoughts on the tax, Mrs Miller-Brice said: “From my point of view (as a consumer), it is what it is. I respect the government’s decision, whatever their reasons are for bringing VAT, I think they have their reasons and we will abide by it. I haven’t had any problems, everything has been fine.”

VAT is charged at a rate of 7.5 per cent on most goods and services, with few exemptions.

The new tax got off to a rocky start with mass confusion in the petroleum industry, and major food store chain Super Value, and its Quality Supermarkets affiliate, by not charging VAT on January 1 because of IT problems.

Rupert Roberts, Super Value’s owner and president, said that none of his stores levied VAT on implementation day after technical problems resulted in the day’s first consumers being charged 10 per cent – not the legal 7.5 per cent.

Since the new tax was implemented, there has also been widespread concern from consumers over price gouging or fraudulent tax application.

Earlier this week, John Rolle, financial secretary in the Ministry of Finance, said that each VAT complaint will be investigated and encouraged consumers to make digital copies of their receipts.

Mr Rolle acknowledged that some businesses were still struggling to make the transition to the new tax, and had not yet made all the necessary adjustments.

However, he maintained that the VAT department would remain vigilant and investigate all claims on a case-by-case basis.

He called on businesses to display their TIN and VAT certification in a prominent place so that customers can readily identify their tax status.

B_I_D___ 9 years, 11 months ago

My question regarding their receipts then would be...were they charging that 10% gratuity before January 1st? Must be SO nice to have political connections and not have to pay your BEC bills and can totally disrespect the new VAT implementation.

proudloudandfnm 9 years, 11 months ago

So can I just tell the government I'm not ready for VAT right now either?

Someone said something about stiff penalties?!?!? Guess that's only for non PLPs....

Sickened 9 years, 11 months ago

Just saying... there may be a difference, in the case of penalties, of a company not charging VAT and the company not paying the correct VAT in taxes. I imagine that as long as Mario's keeps it's receipts and pays the government the correct amount at the end of the month then they won't be penalized. In other words, Mario's could technically absorb the VAT that should have been charged in order to avoid any penalties. As VAT is mandated to be price inclusive then there shouldn't be an issue if they pay the proper amount of VAT to the government????

GrassRoot 9 years, 11 months ago

well who knows what they will pay. Maybe the Government just opened up another (non regulated) way for cronies to run up tabs without paying? I am sure enforcement will be very colorful and selective.

TheMadHatter 9 years, 11 months ago

No - your sales receipts and sales invoices MUST be properly formatted and contain certain information - one item of which is the amount of VAT charged, the rate type (such as "S" for standard) and in the case of an invoice must contain the words "VAT Invoice". Sales receipts do not have to say "VAT Sales Receipt" however.

The_Oracle 9 years, 11 months ago

Gratuities on a receipt should be call gratuities, not inserted in a tax line. Was this being done on receipts prior to Jan 1st? surely someone has a receipt from prior to Jan 1st? Simple enough to investigate, once they're finished with Super Value......

hj 9 years, 11 months ago

Exactly, if I am paying either for gratuity or tax I should know what am I paying for. And what happens if someone else decides tomorrow that he is not ready for VAT?

GrassRoot 9 years, 11 months ago

I assume that is a direct consequence of lacking reading, writing and thinking skills of the work force in the Bahamas. The word VAT has a V an A and a T. Not sure how you can confuse that with G R A T U I T Y, and why is it 10% instead of 15%? But hey, who cares if you are on the right side of the table. am wondering whether Leslie Miller gets now his passport taken away until he pays up.

Cobalt 9 years, 11 months ago

My point exactly!!!

digimagination 9 years, 11 months ago

It should state at the bottom of the bill that a gratuity of 10% has been added 'for your convenience'. Why does it appear on the tax line?! Trust the Millers to fool around with this money as well!

B_I_D___ 9 years, 11 months ago

It's bred into their potcake souls to cheat the government.

Hogfish 9 years, 11 months ago

dont potcake still owe 1/4mil to bec ?

B_I_D___ 9 years, 11 months ago

Wonder how much VAT he ga owe an not pay!!

Hogfish 9 years, 11 months ago

that receipt doesn't even show a TIN number. what's betting the sucker ain even register yet?

GrassRoot 9 years, 11 months ago

the biggest tax cheat in the EU is not income tax, it is VAT. good luck Mr. Bowe, Bahamians will run up the learning curve pretty fast.

Cobalt 9 years, 11 months ago

Gratuity??????? Gratuity is, and should only be included during a dine-in experience when accompanied by the services of a waiter or waitress!!! And even then.... gratuity is only automatically added when the dine-in experience exceeds a certain amount!!! That's how proper dine-in etiquette works!!! You can't include a 60 cent surplus to a 6 dollar tab and then call it gratuity!!! Furthermore.... gratuity is 15% NOT 10%!!! Leslie Miller really believe people stupid!!! This is just another classic example of the price-gouging tactics now in effect in the wake of VAT!!! How Bahamians get so fool?????? Yinna neva been ta school a????

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