Department of Inland Revenue Urges Compliance on VAT Inclusive Pricing

Posted on: June 27, 2016

June 26th, 2016 (Nassau, Bahamas) – Business owners and the general public are reminded that Value Added Tax (VAT) inclusive pricing should be fully adopted for the pricing of all items in The Bahamas and that only VAT registrants are permitted to charge VAT.

It is illegal for non-registrants to charge VAT and offenders will be subject to prosecution.

The Department of Inland Revenue is pleased with the compliance efforts of Bahamian businesses and the public can expect heightened enforcement efforts to ensure continued compliance with the law. All businesses that are registrants should be displaying VAT inclusive prices on all sale items.

Consumers are asked to be vigilant and ensure that VAT Certificates are conspicuously displayed. The VAT Certificate has the VAT watermark as oppose to the TIN Only Certificate, which has the Coat of Arms.

How to properly display VAT-inclusive prices

VAT registrants must indicate that the price is VAT-inclusive by use of price tags, tickets, bin tags, signs or other methods to display individual prices. For breadbasket items, the price tag must be placed on each individual item. Individually tagging each item with the tax-inclusive price is always an acceptable method.
In order to meet the requirement, you must:

  1. State that the price is VAT-inclusive, e.g. “$107.50 VAT inclusive”; or
  2. State that the price is VAT-inclusive along with the amount of VAT, e.g. “$107.50, including $7.50 VAT”

The following methods do not meet the requirements for VAT-inclusive price display:

  1. A display of a VAT-exclusive price alone e.g. “$100”; or
  2. A statement that the price is VAT-exclusive e.g. “$100 (excluding VAT)”; or
  3. A statement that the price is VAT-exclusive and that VAT will be added.
    Non-compliance is a serious offence and may result in fines upward to $75,000.

For further information, visit the Department of Inland Revenue’s website at www.inlandrevenue.finance.gov.bs, email taxinquiries@bahamas.gov.bs or call (242) 461-8050 or toll-free at 225-7280. Also, feel free to visit DIRBahamas on Facebook, Twitter, Youtube and Instagram.



All News

Real Property Tax Notice of Assessment 2020

In accordance with the Real Property Tax Act, Chapter 375 as amended, the Chief Valuation Officer has hereby given the 2020 RPT Notice Click the link below to see the Real Property Tax Notice 2020. https://inlandrevenue.finance.gov.bs/wp-content/uploads/2019/10/RPT-Notice-2020.pdf  

Advisory Regarding VAT Payments on Insurance Claims

Department of Inland Revenue’s Advisory regarding VAT Payments on Insurance Claims The Department of Inland Revenue advises the general public that VAT is not charged on insurance claims. Click link below for full press release Press Release – VAT on Insurance

VAT Filing Extension & Business Licence Suspension (Abaco & Grand Bahama)

In the aftermath of Hurricane Dorian, The Department of Inland Revenue wishes to advise all VAT registrants operating businesses on Abaco, the Abaco Cays and/or Grand Bahama that the filing of VAT returns due September 21, 2019 and October 21, 2019 have now been extended until November 30, 2019; for businesses requiring an extension. Click the link below for full…

New Year to bring several ‘ease of doing business’ reforms for starting a new business

The Ministry of Finance will roll out a provisional business license in the New Year to significantly reduce the time it takes to start a new business. This addition was approved by Parliament during the 2018/2019 budget exercise, and will be implemented by the Department of Inland Revenue in the first quarter of 2019. Click…

Inland Revenue Open on Saturdays in January

The Department of Inland Revenue is opening its Client Services Centre on Saturdays for the month of January to support businesses applying for business licence renewals. Click the link below for the full Press Release Press Release – Inland Revenue open on Saturdays in January