Bahamas | KPMG | GLOBAL

Bahamas

Bahamas

Explore the requirements and rules that apply to electronically supplied services in Bahamas.

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Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes.

If there is no current requirement, is there any anticipated change to that position?

Not applicable, requirement is already in place.

Is an invoice compliant with the VAT/GST law in the customer's country required?

Yes, Bahamas has two types of VAT compliant invoices - a "VAT Invoice" and a "VAT Sales Receipt". The VAT Invoice is used for B2B transactions and a VAT Sales Receipt is used for B2C transactions.

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes, the self-reporting requirements place the tax obligation jointly and severally on the importer and recipient and not on the vendor. This creates a potential double taxation problem. Furthermore, only services provided by electronic commerce are subject to the mandatory registration rule. Foreign suppliers of goods via the internet are not required to register. Supplies of intangible rights have not been addressed (e.g. digital content or media). Greater clarity and certainty from the Tax Authorities is needed.

If there is no current requirement, is there any anticipated change to that position?

Not applicable, requirement is already in place.

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

Not applicable

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement

When did/will that requirement come into effect?

1 January 2015 - With the introduction of VAT.

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

100,000 Bahamian dollars (BSD) - Annual turnover is based on actual or expected turnover.

Is simplified or standard registration required?

Standard. Foreign electronic commerce suppliers will need to obtain a business licence prior to registering for VAT.

Does the requirement apply to all e-services?

Yes
 

Contacts

Jane Adams
Director
T +1 (242) 393 2007
E janeadams1@kpmg.com.bs
 

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