Administrative Controls for Bonded Fuel Sales in the Port Authority Area
|Ministry of finance
|Ministry of Finance
|March 4, 2015
Ministry of Finance, Customs and VAT Department
Reviewing Administrative Controls for Bonded Fuel Sales in the Port Authority Area
March 3, 2015 (Nassau, Bahamas) – The Ministry of Finance and VAT Department announced that new administrative procedures will be put in place to monitor bonded fuel supplies in the Freeport Area.
“We will be working with petroleum distributors to track fuel sales, so that the proper follow up can be done to verify that purchases are for business and not personal use,” a spokesperson said.
A Port Licensee can purchase bonded fuel without having to pay VAT on such supplies. However, the benefit is only to be provided for use within the business. Bonded supplies that are not used within the business are liable for both the VAT and customs duties.
Going forward, the Ministry of Finance, Customs and the VAT Department will establish audit procedures to track the use of bonded fuel supplies. These procedures will be explored instead of considerations to have licensees pay the VAT and then claim a credit or refund. Use of the credit and refund policy has been suspended. The Ministry of Finance spokesperson added that “in the coming days we will begin our discussions with the fuel distributors in the Port Area to perfect these systems.”
To contact the VAT Department directly, please send an email to email@example.com or call VAT Client Services at (242) 225-7280.