Bahamas VAT

Frequently asked questions about Bahamas VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in the Bahamas. VAT is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

Where an e-commerce and telecommunications service provider (such as Zoom), whether domiciled outside or within the Bahamas, makes supplies for the use, enjoyment, benefit or advantage of persons within the Bahamas, there is a requirement for Zoom to register for, collect and remit VAT on all supplies made to customers in the Bahamas. Under the current legislation, there is no differentiation between supplies to business customers (B2B) and supplies to non-business customers (B2C).

Why am I being charged VAT?

Zoom is registered for VAT in the Bahamas as a non-resident supplier of digital services. As such, Zoom is required to collect and remit VAT on all supplies made to customers in the Bahamas.

What is a Tax Identification Number?

A Tax Identification Number (TIN) or VAT registration number is a 9 digit number issued by the Bahamas tax authorities to taxpayers in the Bahamas. Where you have provided your TIN, it will be displayed on invoices issued to you by Zoom.

How do I enter my TIN?

To provide your TIN, please complete the following steps:

1. Sign in to the Zoom web portal.
2. In the navigation menu, click Account Management then Billing.
3. Click the Billing Information tab.
4. Under Sold To Contact, click Edit to edit the VAT Number (which appears after the Sold To Contact address fields).
5. Enter your TIN.
6. Click Save Changes.

Note: You are required to notify us if there is a change to your VAT status.

Does Zoom have a TIN?

Yes. Zoom’s TIN will be shown on the invoice it issues to you.

How is Zoom determining which customers VAT applies to?

If a customer's ‘Sold To’ location is in the Bahamas, Zoom will charge Bahamas VAT on its invoices.

Is there a minimum threshold purchase amount before VAT is applied?

No. All supplies of electronically supplied services to customers in the Bahamas are subject to Bahamas VAT.

Will VAT apply even if I/we provide a valid TIN to Zoom?

Yes. VAT applies to all the supplies that Zoom makes to customers in the Bahamas.

Are there any VAT obligations for me as a customer?

No. The customer in principle has no VAT obligations. If you are registered for VAT in the Bahamas and you want to claim an input tax credit for the VAT paid to Zoom, as a minimum, you should ensure to keep a copy of Zoom’s invoice for your records.

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in the Bahamas. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.