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Bahamas VAT on foreign digital services

The West Indies Island state of the Bahamas imposed VAT obligations on non-resident providers and digital marketplaces for digital and electronic services to consumers from 1 December 2019. There is no special VAT registration process, and no requirement to appoint a local VAT Fiscal Representative. There is a VAT registration threshold of BSD 100,000.

The current VAT rate in the Bahamas is 10% following a VAT cut to 10% 2022.  Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

What digital services are subject to Bahamas VAT?

Income from the following services is liable to VAT:

  • Gaming and games of chance
  • E-learning
  • Apps
  • SaaS or cloud-based software
  • Streaming or download software
  • Online storage
  • Advertising

VAT registration and compliance

There is no electronic services VAT registration process for non-residents in the Bahamas – the same requirements are for resident businesses are required. Providers must register with the Tax Administration Management Information System once they approach the annual VAT registration threshold of BSD 100,000.

Providers or marketplaces must produce locally compliant VAT invoices.

VAT returns must be filed on quarterly basis for most digital services providers. The submission must be made by the 21stof the month following along with any VAT liability payment. The return can be filed electronically via OTAS portal.

Electronic marketplace VAT obligations

Where a provider of digital services acts through an agent, including telecoms and electronic commerce, the intermediary takes on the VAT obligations. Any platform would therefore have to review the obligation to VAT register and report the VAT instead of their third-party merchant.

B2B digital invoices exempted

Foreign providers do not need to charge VAT to resident businesses in the Bahamas. Instead, they may rely on the VAT reverse charge, and zero-rate the transaction. The customer can report the transaction through their VAT return. If a foreign provider only has resident business customers, there is no requirement to VAT register.

Compiling VAT or GST return can be complex.  VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditorintegrated tools.

Central and South America VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Argentina 21% Apr 2018
Bahamas 10% Jan 2015 BSD 100,000
Barbados 17.5% Dec 2019 BBD 200,000
Bolivia 13% Nov 2022 -
Brazil n/a n/a n/a Various proposals
Chile 19% Jun 2020 Nil
Colombia 19% Jan-18 Nil
Costa Rica 13% Oct 2020 Nil Withholding VAT option
Dominican Republic 18% 2023? Nil Currently withholding VAT
Ecuador 12% Sep 2020
El Salvador 13% 2022 - Replace Withholding VAT
Guatemala 12% TBC
Honduras 15% 2022 HNL 250,000
Panama 10% 2022 Withholding VAT
Paraguay 10% Jan-21 Nil Withholding VAT; 4.5% DST
Peru 18% 2022 Nil Withholding VAT
Puerto Rico 10.5% Jan 2020 $100,000; or 200 transactions Marketplaces
Uruguay 22% Jan 2018 Nil VAT and Withholding Tax

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