VAT Bahamas

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Press Release
Banks are allowed to charge VAT on fees that are explicit in nature
Authored by: Value Added Tax Department
Source: Value Added Tax Department
Date: January 26, 2015

 

 

 FOR IMMEDIATE RELEASE

 

 The Value Added Tax (VAT) Department of the Ministry of Finance wishes to advise the public that banks are allowed to charge VAT on fees that are explicit in nature. Explicit fees are those bank charges where a fixed amount is collected for services offered.  These amounts can also be represented as a percentage of a particular figure.  Examples of these are fees charged for ATM withdrawals, safety deposit boxes, annual credit card fees and service fees on savings accounts.

There is no VAT on interest charges associated with mortgages or other loan facilities. A complete list of exempt financial services fees can be found in Section 18 of the VAT Regulations.

The public is further advised that they can view the draft VAT rules and Guidance Notes on Financial Services on the government’s website at www. bahamas.gov.bs/VAT. A list of fees that are subject to VAT must also be published and displayed at all banks.

 

January 20th, 2015

 

 

coat of armsPress Release
The public is advised that individuals can face fines or other penalties if they are found with counterfeit certificates
Authored by: Value Added Tax Department
Source: Value Added Tax Department
Date: January 26, 2015

 

  

FOR IMMEDIATE RELEASE

 

The public is advised that individuals can face fines or other penalties if they are found with counterfeit certificates displayed in their business. According to the First Schedule (Regulation 44), Sections 4 (4) “Not being a taxable person, or being an unregistered taxable person, collecting, advertising or quoting VAT in respect of a taxable supply made to another person”, such contravention of this provision is a very serious offence liable to a fine of up to $50,000 or imprisonment for a term not exceeding two years or both fine and imprisonment.

The public should also be aware, that certificates issued by the VAT Department have distinguishable features. A Tax Identification Number (TIN) Certificate has The Bahamas Coat of Arms watermark. Merchants with TIN Certificates cannot charge VAT. The VAT certificate has a VAT Bahamas watermark. Merchants with VAT certificate are permitted to charge and collect VAT.

Consumers should be aware of these features and report all inconsistencies to the VAT Department at telephone 225-7280 or e-mail: vatcustomerservices@bahamas.gov.bs.

 

January 26th, 2015

 

 

 

 

 

 


 


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