--- oa_review_kit: v1 guide_slug: bahamas-vat guide_version: bahamas-vat@2026-04-13T17:52:49.942Z archetype: vat_gst --- # Review kit: Bahamas VAT Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/bahamas-vat/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("Bahamas VAT", slug `bahamas-vat`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order? 2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line? 3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go? 4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop? 5. [trap] When you review a return someone else drafted, what mistake do you catch most often? 6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it? 7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough? 8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo? 9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it? 10. [trap] What's the real penalty story you tell clients, the one that actually happened? 11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper? 12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving? ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: bahamas-vat guide_version: bahamas-vat@2026-04-13T17:52:49.942Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- name: bahamas-vat description: Use this skill whenever asked to prepare, review, or classify transactions for a Bahamas VAT return for any client. Trigger on phrases like "Bahamas VAT", "DIR Bahamas", "Department of Inland Revenue Bahamas", or any request involving Bahamas VAT. The Bahamas has NO income tax — VAT is the primary tax. MUST be loaded alongside vat-workflow-base v0.1 or later. ALWAYS read this skill before touching any Bahamas VAT work. jurisdiction: BS domain: vat-gst tax_year: 2025 --- # bahamas-vat ## Section 1 — Quick reference **Quick reference table** | Field | Value | | --- | --- | | Country | The Bahamas (Commonwealth of The Bahamas) | | Standard rate | 10% | | Reduced rate | 5% (food in food stores from April 2025; medications, diapers, hygiene from September 2025) | | Zero rate | 0% (exports, international transport) | | Exempt | Financial services, residential rent, education, medical, public transport | | Return form | VAT return (frequency based on turnover) | | Filing portal | https://inlandrevenue.finance.gov.bs | | Authority | Department of Inland Revenue (DIR) | | Currency | BSD (Bahamian Dollar, pegged 1:1 to USD) | | Filing frequencies | Monthly (>BSD 5M), Bimonthly (BSD 400K–5M), Quarterly (BSD 100K–400K), Annual (voluntary) | | Deadline | 21st of the month following the period | | Registration threshold | BSD 100,000 mandatory; BSD 50,000 voluntary | | No income tax | The Bahamas has NO income tax of any kind | | Companion skill | vat-workflow-base v0.1 or later — MUST be loaded | | Validated by | Pending local practitioner validation | **Conservative defaults** | Ambiguity | Default | | --- | --- | | Unknown rate on a sale | 10% | | Unknown VAT status of a purchase | Not deductible | | Unknown counterparty location | Domestic Bahamas | | Unknown food classification (store vs restaurant) | 10% (restaurant/prepared) | **Red flag thresholds** | Threshold | Value | | --- | --- | | HIGH single-transaction size | BSD 10,000 | | HIGH tax-delta on a single default | BSD 500 | ## Section 2 — Required inputs and refusal catalogue ### Required inputs - **Minimum viable input** — bank statement for the period. Acceptable from: CIBC FirstCaribbean, RBC Bahamas (Royal Bank), Scotiabank Bahamas, Commonwealth Bank, Fidelity Bank, or any other. _(Section 2 — Required inputs and refusal catalogue)_ ### Bahamas-specific refusal catalogue - **R-BS-1 — Grand Bahama Freeport** — Trigger: client operates within Grand Bahama Port Authority area. Message: "Freeport operations under the Hawksbill Creek Agreement have special VAT provisions requiring specialist analysis. Please escalate." _(R-BS-1)_ - **R-BS-2 — Investment fund structures** — Trigger: client is an investment fund. Message: "Investment fund VAT treatment requires specialist analysis. Please escalate." _(R-BS-2)_ ## Section 3 — Supplier pattern library ### 3.1 Bahamian banks (fees exempt — exclude) **Bahamian banks pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | CIBC FIRSTCARIBBEAN, CIBC FC | EXCLUDE for bank charges | Financial service, exempt | | RBC BAHAMAS, ROYAL BANK | EXCLUDE for bank charges | Same | | SCOTIABANK BS, COMMONWEALTH BANK | EXCLUDE for bank charges | Same | | FIDELITY BANK | EXCLUDE for bank charges | Same | | INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope | ### 3.2 Government (exclude) **Government pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | DIR, DEPT INLAND REVENUE | EXCLUDE | Tax payment | | CUSTOMS, BAHAMAS CUSTOMS | EXCLUDE | Duty (import VAT separate) | | BUSINESS LICENCE, BL FEE | EXCLUDE | Government fee | | NIB, NATIONAL INSURANCE | EXCLUDE | National insurance | ### 3.3 Utilities **Utilities pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | BPL, BAHAMAS POWER AND LIGHT | Domestic 10% | Electricity | | WSC, WATER AND SEWERAGE | Domestic 10% | Water | | BTC, BAHAMAS TELECOMMUNICATIONS | Domestic 10% | Telecoms | | ALIV | Domestic 10% | Mobile | ### 3.4 Insurance (exempt — exclude) **Insurance pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | BAHAMAS FIRST, COLINA, J.S. JOHNSON | EXCLUDE | Exempt | | SUMMIT INSURANCE | EXCLUDE | Same | ### 3.5 SaaS and international services **SaaS pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | GOOGLE, MICROSOFT, META, AWS | Self-assess 10% (reverse charge) | Non-resident | | ZOOM, SLACK, CANVA | Self-assess 10% | Same | ### 3.6 Tourism **Tourism pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | HOTEL, RESORT, ATLANTIS | Domestic 10% (output) | Tourism supply | | BOOKING.COM, EXPEDIA, AIRBNB | Platform fee — verify entity | May require reverse charge | ### 3.7 Payroll and exclusions **Payroll pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | SALARY, WAGES | EXCLUDE | No income tax; outside VAT scope | | OWN TRANSFER, INTERNAL | EXCLUDE | Internal | | DIVIDEND | EXCLUDE | No income tax | | CASH WITHDRAWAL | TIER 2 — ask | Default exclude | ## Section 4 — Worked examples ### Example 1 — Standard domestic sale at 10% **Input line:** `05.04.2026 ; NASSAU TRADING CO ; CREDIT ; Invoice BS-041 ; BSD 1,100` **Reasoning:** Domestic. 10%. Net = BSD 1,000, VAT = BSD 100. **Example 1 result table** | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 05.04.2026 | NASSAU TRADING CO | +1,100 | +1,000 | 100 | 10% | Output | N | — | ### Example 2 — Food in food store at 5% (from April 2025) **Input line:** `10.04.2026 ; SUPER VALUE FOOD STORE ; DEBIT ; Groceries ; BSD -105` **Reasoning:** Food in food store, reduced 5% rate from April 2025. Net = BSD 100, VAT = BSD 5. **Example 2 result table** | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 10.04.2026 | SUPER VALUE FOOD STORE | -105 | -100 | 5 | 5% | Input | N | — | ### Example 3 — Export, zero-rated **Input line:** `15.04.2026 ; US BUYER INC ; CREDIT ; Exported conch ; BSD 5,000` **Example 3 result table** | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 15.04.2026 | US BUYER INC | +5,000 | +5,000 | 0 | 0% | Zero-rated | N | — | ### Example 4 — Non-resident service (reverse charge) **Input line:** `18.04.2026 ; US CONSULTING FIRM ; DEBIT ; Advisory ; BSD -3,000` **Reasoning:** Reverse charge. Self-assess 10% output = BSD 300. Claim input BSD 300 if fully taxable. **Example 4 result table** | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 18.04.2026 | US CONSULTING FIRM | -3,000 | -3,000 | 300 | 10% | Output + Input | N | — | ### Example 5 — Bank charges, excluded **Input line:** `30.04.2026 ; CIBC FIRSTCARIBBEAN ; DEBIT ; Monthly fee ; BSD -25` **Example 5 result table** | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 30.04.2026 | CIBC FIRSTCARIBBEAN | -25 | — | — | — | — | N | "Exempt" | ## Section 5 — Tier 1 classification rules (compressed) ### 5.1 Standard rate 10% — Default for most taxable supplies. - **Standard rate** — 10% _(5.1 Standard rate 10% — Default for most taxable supplies.)_ ### 5.2 Reduced rate 5% — Food in food stores (from Apr 2025), medications, diapers, hygiene products (from Sep 2025). Moving to 0% for unprepared food from April 2026 — verify. - **Reduced rate** — 5% (food in food stores from Apr 2025, medications, diapers, hygiene products from Sep 2025); moving to 0% for unprepared food from April 2026 — verify. _(5.2 Reduced rate 5%)_ ### 5.3 Zero rate — Exports, international transport. - **Zero rate** — 0% for exports, international transport. _(5.3 Zero rate — Exports, international transport.)_ ### 5.4 Exempt — Financial services, residential rent, education, medical, public transport. - **Exempt categories** — Financial services, residential rent, education, medical, public transport. _(5.4 Exempt)_ ### 5.5 Input tax credit — Available on purchases for taxable supplies. Apportionment if mixed. - **Input tax credit** — Available on purchases for taxable supplies. Apportionment if mixed. _(5.5 Input tax credit)_ ### 5.6 Blocked input — Entertainment, personal vehicles, personal consumption. - **Blocked input** — Entertainment, personal vehicles, personal consumption. _(5.6 Blocked input)_ ### 5.7 Imports — VAT at 10% on CIF plus duties. Paid at customs. - **Imports** — VAT at 10% on CIF plus duties. Paid at customs. _(5.7 Imports)_ ### 5.8 Reverse charge — Non-resident services: self-assess 10%. Claim input if for taxable supplies. - **Reverse charge** — Non-resident services: self-assess 10%. Claim input if for taxable supplies. _(5.8 Reverse charge)_ ### 5.9 No income tax — The Bahamas has no income tax. VAT is primary revenue source. - **No income tax** — The Bahamas has no income tax. VAT is primary revenue source. _(5.9 No income tax)_ ## Section 6 — Tier 2 catalogue (compressed) ### 6.1 Food classification — Default: 10% unless in food store. Question: "Is this food in a food store (5%) or prepared food/restaurant (10%)?" - **Food classification default** — Default: 10% unless in food store. Question: "Is this food in a food store (5%) or prepared food/restaurant (10%)?" _(6.1 Food classification)_ ### 6.2 Freeport operations — Default: refuse (R-BS-1). - **Freeport operations default** — Default: refuse (R-BS-1). _(6.2 Freeport operations)_ ### 6.3 Tourism sector — Default: 10%. Question: "Hotel occupancy tax separate from VAT?" - **Tourism sector default** — Default: 10%. Question: "Hotel occupancy tax separate from VAT?" _(6.3 Tourism sector)_ ### 6.4 SaaS entities — Default: self-assess 10%. - **SaaS entities default** — Default: self-assess 10%. _(6.4 SaaS entities)_ ### 6.5 Cash withdrawals — Default: exclude. - **Cash withdrawals default** — Default: exclude. _(6.5 Cash withdrawals)_ ## Section 7 — Excel working paper template Per vat-workflow-base Section 3, with Bahamas fields: Output 10%, Output 5%, Zero-rated, Exempt, Input domestic, Input imports, Net VAT. ## Section 8 — Bank statement reading guide CIBC FirstCaribbean and RBC exports CSV/PDF. BSD primary (= USD). Internal transfers: exclude. No foreign currency conversion needed for USD (BSD pegged 1:1). ## Section 9 — Onboarding fallback ### 9.1 TIN — "What is your DIR TIN?" - **TIN question** — "What is your DIR TIN?" _(9.1 TIN)_ ### 9.2 Filing frequency — Based on turnover. "Annual turnover bracket?" - **Filing frequency question** — Based on turnover. "Annual turnover bracket?" _(9.2 Filing frequency)_ ### 9.3 Industry — "What does the business do?" - **Industry question** — "What does the business do?" _(9.3 Industry)_ ### 9.4 Exports — "Do you export?" - **Exports question** — "Do you export?" _(9.4 Exports)_ ### 9.5 Freeport — "Are you in Grand Bahama Freeport?" (If yes, R-BS-1 fires.) - **Freeport question** — "Are you in Grand Bahama Freeport?" (If yes, R-BS-1 fires.) _(9.5 Freeport)_ ### 9.6 Credit brought forward — Always ask. - **Credit brought forward** — Always ask. _(9.6 Credit brought forward)_ ## Section 10 — Reference material ### Sources 1. Value Added Tax Act 2014 (as amended). 2. DIR guidelines. 3. Rate history: 7.5% (2015), 12% (2018), 10% (2022), 5% reduced (2025). ### Known gaps 1. Freeport refused. 2. Food 0% transition (April 2026) — verify current status. 3. No income tax confirmation must be stated clearly. ### Change log - v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure. ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional before filing. The most up-to-date version is maintained at [openaccountants.com](https://openaccountants.com). ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon. The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.