Financial Secretary affirms VAT Guide explanation of exclusion VAT on sales of goods amongst licensees of the Grand Bahama Port Authority

Posted on: September 10, 2014

Authored by: Ministry of Finance
Source: Ministry of Finance
Date: September 10, 2014

In a presentation to the Grand Bahama Chamber of Commerce on September 10, the Financial Secretary stated that sales of goods between licensees of the Grand Bahama Port Authority would be  subject to VAT and that VAT would only be excluded based on the amounts that should have been collected by Customs.

“I want to clarify that this is not the case,” he said.   “The intended treatment of these transactions is exactly as they are described in the Guidance Notes for the Port Area and in the legislation.  Sales of these items between licensees, where they are considered consumables, are not subject to VAT.”  

The Financial Secretary went on to explain that “what the law does provide is for licensees to apply for a refund of VAT already paid to Customs in cases where licensees are supplied with goods shipped from elsewhere in The Bahamas.  This is because local suppliers who operate outside the Port Area would not be required to distinguish amongst the final VAT treatment that is afforded to end customers within The Bahamas. They would charge the VAT whenever the law required such. As a consequence, and in such circumstances, Port licensees would have to seek direct refunds from the government.”

Under the VAT legislation, Port licensees are not required to pay VAT on goods that are imported into Freeport, where these go directly into producing other goods or services.  The legislation treats these as “non-consumables” within the meaning established by the Hawksbill Creek agreement.

The Financial Secretary also stated that “how licensees are treated in these cases does not materially weaken Grand Bahama’s revenue potential.  It does however reduce the amount of VAT credits that would be claimed by licensees that are VAT registrants.”



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