Ministry of Finance Confirms Application of VAT on Supplies of Services made between Grand Bahama Port Authority Licensees

Posted on: September 15, 2014

Authored by: Ministry of Finance
Source: Ministry of Finance
Date: September 15, 2014

Recent press reports purport to suggest that there exists ambiguity as to the VAT treatment of supplies of services made in the Port Area between Port licensees.

The Ministry of Finance wishes to reaffirm that the VAT Act that was recently passed by Parliament clearly sets out the VAT treatment of such supplies.  Specifically, section 3.(3)(a) states that the VAT Act does not apply where:

“a supply of goods within the Port Area is made by a taxable person who is a Port Licensee to another Port Licensee and the goods are of a kind and for a use within the customs duties exemptions in clause 2 of Hawksbill”.

It is to be noted, in this context, that the VAT Act excludes the application of VAT specifically in the case of goods that are of a kind and for a use within the customs duties exemptions of Hawksbill, thereby explicitly excluding services from the non-application of VAT.

The Guidance Note on VAT and the Hawksbill Creek Agreement that was recently issued by the Ministry of Finance provided further clarification on this matter.  In the section entitled “What if I provide services to another Port licensee, will they be subject to VAT?”, it is explained that:

Services provided by a Port licensee are subject to the general VAT rules and therefore services provided by one Port licensee to another Port licensee will be subject to VAT”.

Of course, such transactions will be subject to the general exemptions of services that are provided in the Second Schedule of the VAT Act.  Examples of such exemptions relate to the provision of financial and insurance services.



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