Purchase of VAT-Free Goods Inside the Zone
The purchase of authorized goods within the SERZ is VAT Free at the point of sale from December 1, 2019 until June 30, 2020.
PLEASE NOTE: Fuel is only VAT-Free at the point of sale until the affected islands are electrified. There is no pre-approval process for point of sale purchases.
Domestic Purchase of VAT Free Goods Outside of the Zone
Individuals and businesses that are residents of Abaco, the Abaco Cays, Grand Bahama Island, Sweetings Cay, Deep Water Cay and Water Cay are eligible to purchase VAT Free goods outside of the SERZ from December 1, 2019 until June 30, 2020 from participating businesses.
Please note: It is not mandatory for suppliers outside of the SERZ to participate.
Process for Purchasing Goods Outside of the SERZ:
- Eligible individuals and business must secure a pro forma invoice from a participating business/supplier and complete the Tax Relief Consolidated Form.
- The application form and pro forma invoice is submitted to the Department of Inland Revenue (DIR) for verification to confirm the eligibility of an individual or business and to ensure that the items are on the approved list. Businesses that are licenced to operate in the SERZ and residents of the SERZ are eligible.
- Once approved, the certified form and invoice will be emailed or can be collected in person. Clients must submit the certified invoice to their Nassau-based supplier. (Businesses will keep the stamped credit invoice)
- Goods can then be sold to purchaser VAT Free
Process for Filing VAT Returns for Businesses Outside of the SERZ:
- File VAT Returns with items under zero-rated goods
- Upload the original copy of the stamped credit invoice (quote/pro forma invoice)
- VAT credit will be applied for the total amount of stamp credit invoices, to compensate for the shortage on receivables.