Nassau, New Providence, The Bahamas
Dear Valued Customers,
For more than a year now FBOs (Fixed Base Operator) in The Bahamas have been in discussions with The Bahamas Government about its treatment of Value Added Tax (VAT) on the aviation sector. The Bahamas Government’s Ministry of Finance (VAT Department) has released clarification on the treatment of VAT on aircraft arriving to/departing from The Bahamas. Please click here to view the Official Letter from the VAT Comptroller. Odyssey Aviation will implement this clarified change on the 6th of January 2016.
Zero-rated VAT treatment is only to apply to regularly scheduled commercial (passenger) aircraft, freight and courier services. “The treatment also extends to the equivalent of C135 operators who can provide evidence to the VAT Comptroller and Customs Departments that they provide, on average, at least once-weekly flights to or from The Bahamas, even if limited to a specified tourist season. To facilitate this process the Department of Inland Revenue will issue TINs to all commercial operators and provide certificates on a case by case basis in order to identify which operators will be eligible for zero-rated treatment on services provided by FBOs. An expedited service will be put in place to process these applications during January 2016.” FBOs will be required to maintain a copy of each certificate of eligibility for zero-rating on file. VAT at the Standard Rate (7.5%) will be applied to all goods and services provided to all other aircraft arriving to/departing from The Bahamas.
The VAT Department has provided us with the information and links below to assist the commercial operators in obtaining a TIN and certificate:
The following link: https://www.youtube.com/watch?v=kBa6FTfYrWM includes direct instructions on how to register for VAT. A company that wants to register for TIN only (i.e. not a VAT account) should instead choose option 5 which states (I am an authorized person registering a non-individual (company, partnership, non-profit or trust etc.) not liable for VAT but require a Tax Identification Number), this is located on the first page found after clicking the “start” button.
Before a taxpayer can register for either a VAT account or a TIN they should create an account by either: Going to the website http://www.inlandrevenue.finance.gov.bs/ and clicking the green button that says “register” and/or also going to https://vat.revenue.gov.bs/ and clicking the button that says “sign up for free”. I recommend that the taxpayer enters the link in exactly as written.
We greatly appreciate your continued loyalty and support.
Odyssey Aviation Bahamas