Organisation : Bahamas Ministry of Finance, Value Added Tax Department
Facility Name : Applying For VAT Registration
Country : Bahamas
Website : https://inlandrevenue.finance.gov.bs/value-added-tax/applying-for-vat-registration/
How To Apply For VAT Registration in Bahamas?
VAT, or Value Added Tax, is a consumption based tax charged on most goods or services locally bought or rendered. The standard rate of VAT for most goods and services is 10%. Some goods and services are zero-rated, i.e. a 0% rate of VAT applies to them, and some are exempt. A list of exempt supplies can be found in the VAT Act. All consumers pay VAT. The VAT collected by businesses will be paid to the government.
Related / Similar Facility : Renewing Business Licence Bahamas
You are required to register for and charge VAT under the VAT Act if your past or future 12 months of taxable activity exceeds the $100,000 threshold. Most businesses must apply within 14 days of meeting these requirements or face penalties. You can apply online at vat.revenue.gov.bs You can also create and manage your VAT account via the address.
Register VAT Here : https://vat.revenue.gov.bs/
How To Submit VAT Return?
The VAT return is a form that is completed and submitted online at vat.revenue.gov.bs at regular intervals.Create and manage your online VAT account. The form requires you to enter the total VAT inclusive amount of sales or supplies you made within the specific period, the amount of VAT you collected from your customers (output tax) will automatically be calculated and the amount of VAT you paid on your purchases (input tax); during the period.
Ultimately, the return will calculate the net amount you must pay to the Government or the amount of excess credit which may be used as an input tax deduction in the next tax period. All VAT returns are completed and submitted online at https://vat.revenue.gov.bs.
FAQ On VAT
Frequently Asked Questions FAQ On VAT
What happens if my application is not approved?
If your application is not approved, you will get an email notification stating the reason(s) for such within 21 days of submittal. Once the stated reason(s) is/are resolved, you can resubmit your request for consideration.
Can I have someone manage my VAT Account?
An employee or an appointed representative (e.g. external accountant or business advisor) may submit a registration form on your behalf and may be given delegated responsibility to manage your account or aspects of your account (e.g. file returns only).
Can I cancel or suspend my registration?
You can apply to cancel your VAT registration on the following conditions:
** You have ceased conducting taxable activities.
** Your taxable sales activity has fallen below the threshold during the twelve months preceding the request for cancellation;
** You anticipate that the threshold will not be met in the next twelve months following the request for cancellation; and
** A minimum of two years has elapsed since the effective date of registration.
** For administrative purposes, the Department of Inland Revenue will use a threshold for de-registration of $80,000 per annum.
What is the difference between a VAT Certificate and a TIN Certificate?
A VAT Certificate is a document that allows a registrant to charge and collect VAT as well as receive refunds where the amount of input VAT has exceeded the amount of output VAT. A TIN Certificate does not allow a registrant to charge and collect VAT however they are eligible to receive refunds. TIN Certificates maybe be required by persons or businesses that carry out business with The Government.
What are my responsibilities as a VAT registrant?
All VAT registrants, including voluntary registrants, must display their VAT Certificates prominently, display VAT inclusive prices at the retail level, issue valid invoices and receipts, maintain proper accounts and records, file accurate and timely VAT returns, and remit the net VAT collected (output minus input VAT) to the government within the stipulated deadlines.
What do I charge VAT on?
VAT is charged on all goods and services that are not zero-rated or exempt.
Will VAT increase my business costs?
As a VAT registrant, VAT is not a cost to your business, because you can reclaim input VAT paid on purchases made for the provision of taxable goods and services.