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OOpenAccountants
openaccountants/skills/bahamas-vat.md
bahamas-vat.md238 lines9.3 KB
v20
1---
2name: bahamas-vat
3description: 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.
4version: 2.0
5---
6 
7# Bahamas VAT Return Skill v2.0
8 
9## Section 1 — Quick reference
10 
11| Field | Value |
12|---|---|
13| Country | The Bahamas (Commonwealth of The Bahamas) |
14| Standard rate | 10% |
15| Reduced rate | 5% (food in food stores from April 2025; medications, diapers, hygiene from September 2025) |
16| Zero rate | 0% (exports, international transport) |
17| Exempt | Financial services, residential rent, education, medical, public transport |
18| Return form | VAT return (frequency based on turnover) |
19| Filing portal | https://inlandrevenue.finance.gov.bs |
20| Authority | Department of Inland Revenue (DIR) |
21| Currency | BSD (Bahamian Dollar, pegged 1:1 to USD) |
22| Filing frequencies | Monthly (>BSD 5M), Bimonthly (BSD 400K–5M), Quarterly (BSD 100K–400K), Annual (voluntary) |
23| Deadline | 21st of the month following the period |
24| Registration threshold | BSD 100,000 mandatory; BSD 50,000 voluntary |
25| No income tax | The Bahamas has NO income tax of any kind |
26| Companion skill | vat-workflow-base v0.1 or later — MUST be loaded |
27| Validated by | Pending local practitioner validation |
28 
29**Conservative defaults:**
30 
31| Ambiguity | Default |
32|---|---|
33| Unknown rate on a sale | 10% |
34| Unknown VAT status of a purchase | Not deductible |
35| Unknown counterparty location | Domestic Bahamas |
36| Unknown food classification (store vs restaurant) | 10% (restaurant/prepared) |
37 
38**Red flag thresholds:**
39 
40| Threshold | Value |
41|---|---|
42| HIGH single-transaction size | BSD 10,000 |
43| HIGH tax-delta on a single default | BSD 500 |
44 
45---
46 
47## Section 2 — Required inputs and refusal catalogue
48 
49### Required inputs
50 
51**Minimum viable** — bank statement for the period. Acceptable from: CIBC FirstCaribbean, RBC Bahamas (Royal Bank), Scotiabank Bahamas, Commonwealth Bank, Fidelity Bank, or any other.
52 
53### Bahamas-specific refusal catalogue
54 
55**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."
56 
57**R-BS-2 — Investment fund structures.** Trigger: client is an investment fund. Message: "Investment fund VAT treatment requires specialist analysis. Please escalate."
58 
59---
60 
61## Section 3 — Supplier pattern library
62 
63### 3.1 Bahamian banks (fees exempt — exclude)
64 
65| Pattern | Treatment | Notes |
66|---|---|---|
67| CIBC FIRSTCARIBBEAN, CIBC FC | EXCLUDE for bank charges | Financial service, exempt |
68| RBC BAHAMAS, ROYAL BANK | EXCLUDE for bank charges | Same |
69| SCOTIABANK BS, COMMONWEALTH BANK | EXCLUDE for bank charges | Same |
70| FIDELITY BANK | EXCLUDE for bank charges | Same |
71| INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope |
72 
73### 3.2 Government (exclude)
74 
75| Pattern | Treatment | Notes |
76|---|---|---|
77| DIR, DEPT INLAND REVENUE | EXCLUDE | Tax payment |
78| CUSTOMS, BAHAMAS CUSTOMS | EXCLUDE | Duty (import VAT separate) |
79| BUSINESS LICENCE, BL FEE | EXCLUDE | Government fee |
80| NIB, NATIONAL INSURANCE | EXCLUDE | National insurance |
81 
82### 3.3 Utilities
83 
84| Pattern | Treatment | Notes |
85|---|---|---|
86| BPL, BAHAMAS POWER AND LIGHT | Domestic 10% | Electricity |
87| WSC, WATER AND SEWERAGE | Domestic 10% | Water |
88| BTC, BAHAMAS TELECOMMUNICATIONS | Domestic 10% | Telecoms |
89| ALIV | Domestic 10% | Mobile |
90 
91### 3.4 Insurance (exempt — exclude)
92 
93| Pattern | Treatment | Notes |
94|---|---|---|
95| BAHAMAS FIRST, COLINA, J.S. JOHNSON | EXCLUDE | Exempt |
96| SUMMIT INSURANCE | EXCLUDE | Same |
97 
98### 3.5 SaaS and international services
99 
100| Pattern | Treatment | Notes |
101|---|---|---|
102| GOOGLE, MICROSOFT, META, AWS | Self-assess 10% (reverse charge) | Non-resident |
103| ZOOM, SLACK, CANVA | Self-assess 10% | Same |
104 
105### 3.6 Tourism
106 
107| Pattern | Treatment | Notes |
108|---|---|---|
109| HOTEL, RESORT, ATLANTIS | Domestic 10% (output) | Tourism supply |
110| BOOKING.COM, EXPEDIA, AIRBNB | Platform fee — verify entity | May require reverse charge |
111 
112### 3.7 Payroll and exclusions
113 
114| Pattern | Treatment | Notes |
115|---|---|---|
116| SALARY, WAGES | EXCLUDE | No income tax; outside VAT scope |
117| OWN TRANSFER, INTERNAL | EXCLUDE | Internal |
118| DIVIDEND | EXCLUDE | No income tax |
119| CASH WITHDRAWAL | TIER 2 — ask | Default exclude |
120 
121---
122 
123## Section 4 — Worked examples
124 
125### Example 1 — Standard domestic sale at 10%
126 
127**Input line:** `05.04.2026 ; NASSAU TRADING CO ; CREDIT ; Invoice BS-041 ; BSD 1,100`
128 
129**Reasoning:** Domestic. 10%. Net = BSD 1,000, VAT = BSD 100.
130 
131| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
132|---|---|---|---|---|---|---|---|---|
133| 05.04.2026 | NASSAU TRADING CO | +1,100 | +1,000 | 100 | 10% | Output | N | — |
134 
135### Example 2 — Food in food store at 5% (from April 2025)
136 
137**Input line:** `10.04.2026 ; SUPER VALUE FOOD STORE ; DEBIT ; Groceries ; BSD -105`
138 
139**Reasoning:** Food in food store, reduced 5% rate from April 2025. Net = BSD 100, VAT = BSD 5.
140 
141| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
142|---|---|---|---|---|---|---|---|---|
143| 10.04.2026 | SUPER VALUE FOOD STORE | -105 | -100 | 5 | 5% | Input | N | — |
144 
145### Example 3 — Export, zero-rated
146 
147**Input line:** `15.04.2026 ; US BUYER INC ; CREDIT ; Exported conch ; BSD 5,000`
148 
149| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
150|---|---|---|---|---|---|---|---|---|
151| 15.04.2026 | US BUYER INC | +5,000 | +5,000 | 0 | 0% | Zero-rated | N | — |
152 
153### Example 4 — Non-resident service (reverse charge)
154 
155**Input line:** `18.04.2026 ; US CONSULTING FIRM ; DEBIT ; Advisory ; BSD -3,000`
156 
157**Reasoning:** Reverse charge. Self-assess 10% output = BSD 300. Claim input BSD 300 if fully taxable.
158 
159| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
160|---|---|---|---|---|---|---|---|---|
161| 18.04.2026 | US CONSULTING FIRM | -3,000 | -3,000 | 300 | 10% | Output + Input | N | — |
162 
163### Example 5 — Bank charges, excluded
164 
165**Input line:** `30.04.2026 ; CIBC FIRSTCARIBBEAN ; DEBIT ; Monthly fee ; BSD -25`
166 
167| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
168|---|---|---|---|---|---|---|---|---|
169| 30.04.2026 | CIBC FIRSTCARIBBEAN | -25 | — | — | — | — | N | "Exempt" |
170 
171---
172 
173## Section 5 — Tier 1 classification rules (compressed)
174 
175### 5.1 Standard rate 10% — Default for most taxable supplies.
176### 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.
177### 5.3 Zero rate — Exports, international transport.
178### 5.4 Exempt — Financial services, residential rent, education, medical, public transport.
179### 5.5 Input tax credit — Available on purchases for taxable supplies. Apportionment if mixed.
180### 5.6 Blocked input — Entertainment, personal vehicles, personal consumption.
181### 5.7 Imports — VAT at 10% on CIF plus duties. Paid at customs.
182### 5.8 Reverse charge — Non-resident services: self-assess 10%. Claim input if for taxable supplies.
183### 5.9 No income tax — The Bahamas has no income tax. VAT is primary revenue source.
184 
185---
186 
187## Section 6 — Tier 2 catalogue (compressed)
188 
189### 6.1 Food classification — Default: 10% unless in food store. Question: "Is this food in a food store (5%) or prepared food/restaurant (10%)?"
190### 6.2 Freeport operations — Default: refuse (R-BS-1).
191### 6.3 Tourism sector — Default: 10%. Question: "Hotel occupancy tax separate from VAT?"
192### 6.4 SaaS entities — Default: self-assess 10%.
193### 6.5 Cash withdrawals — Default: exclude.
194 
195---
196 
197## Section 7 — Excel working paper template
198 
199Per vat-workflow-base Section 3, with Bahamas fields: Output 10%, Output 5%, Zero-rated, Exempt, Input domestic, Input imports, Net VAT.
200 
201---
202 
203## Section 8 — Bank statement reading guide
204 
205CIBC FirstCaribbean and RBC exports CSV/PDF. BSD primary (= USD). Internal transfers: exclude. No foreign currency conversion needed for USD (BSD pegged 1:1).
206 
207---
208 
209## Section 9 — Onboarding fallback
210 
211### 9.1 TIN — "What is your DIR TIN?"
212### 9.2 Filing frequency — Based on turnover. "Annual turnover bracket?"
213### 9.3 Industry — "What does the business do?"
214### 9.4 Exports — "Do you export?"
215### 9.5 Freeport — "Are you in Grand Bahama Freeport?" (If yes, R-BS-1 fires.)
216### 9.6 Credit brought forward — Always ask.
217 
218---
219 
220## Section 10 — Reference material
221 
222### Sources
2231. Value Added Tax Act 2014 (as amended). 2. DIR guidelines. 3. Rate history: 7.5% (2015), 12% (2018), 10% (2022), 5% reduced (2025).
224 
225### Known gaps
2261. Freeport refused. 2. Food 0% transition (April 2026) — verify current status. 3. No income tax confirmation must be stated clearly.
227 
228### Change log
229- v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure.
230 
231---
232 
233## Disclaimer
234 
235This 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.
236 
237The most up-to-date version is maintained at [openaccountants.com](https://openaccountants.com).
238 

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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.

BSty-2025

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