VAT in the Bahamas

A company that sells goods or services inside the Bahamas meets VAT early. The Department of Inland Revenue states that VAT was introduced in January 2015 and applies at a standard rate of 10% and a zero rate of 0%, with goods exported to customers abroad exempt or zero rated. For an owner abroad, the practical work is registration, issuing invoices that show VAT correctly, and filing returns on time.

Before you hire a firm, ask whether your expected sales make registration compulsory and from what date. Ask how it handles invoices in other currencies, what it needs from you each period and whether returns are filed in its name or yours. A firm used to your sector, such as hospitality, property or financial services, will know which supplies are standard rated and which are not.

Six firms on Accountanty offer VAT services in the Bahamas: three corporate services providers, two law firms and one accounting firm. Four of them focus on clients from abroad, and the client groups they name include fund managers, foreign investors, and hotel groups and developers. The Bahamas guide covers the business licence that usually comes with VAT registration, and the tax compliance page covers the other filings.

Firms offering VAT in the Bahamas

Frequently asked questions

What is the VAT rate in the Bahamas?

The Department of Inland Revenue states two rates: a standard rate of 10% and a zero rate of 0%. Goods exported to customers abroad are classified as exempt or zero rated. A VAT firm can tell you which rate applies to each of your sales.

Does an IBC need to register for VAT?

It depends on whether the company makes taxable sales in the Bahamas. A company that only does business abroad may never need to register, while one selling locally probably will. Ask a firm to check your planned sales before you start trading.

How do I register for VAT in the Bahamas?

The Department of Inland Revenue says VAT registration is completed online. A firm that offers VAT services can prepare the application, confirm the documents needed and file the returns once you are registered.

Other services in the Bahamas

Accountants by city in the Bahamas

Setting up a company in the Bahamas: the guide and every firm

General information, not legal or tax advice. Rules, rates and fees change: check them with the official sources linked on this page or with a qualified adviser before you act.