(Draft) VAT Registration - Bahamas

COMMONWEALTH OF THE BAHAMAS
Ministry of Finance

Draft Value Added Tax and Regulations

November 2013

The drafts of the Value Added Tax (VAT) Bill and Regulations are being released to expand the
public discussion and consultation process on the fiscal reform initiative. The drafts summarize
the government policy framework for advancing the implementation of the tax. Following the
consultation process and prior to the passage of the legislation the Government reserves the right
to revise the policy framework, having regard to the initial phasing of customs tariff and excise
tax reductions (and correspondingly the rate of the tax) and the scope of VAT exemptions. This
process is to ensure that the revenue and fiscal consolidation targets are maintained. Revisions
to the management structure for the CRA will also be reflected in the draft legislation to be sent
to Parliament.

The public is invited to submit comments on the draft to the Ministry of Finance as follows:

The Financial Secretary
Ministry of Finance
Sir Cecil Wallace Whitfield Centre
West Bay Street
P.O. Box N3017
Nassau Bahamas
Email: taxreform@bahamas.gov.bs

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VALUE ADDED TAX REGULATIONS, 2013
Arrangemen !" Se#$!n%
Se#$!n
&ART I ' &RELIMINAR( 4
1. Citation................................................................................................................4
2. Interpretation........................................................................................................4
3. Determination of fair market value and cash value..............................................8
4. Taxable activit....................................................................................................!
". Criteria for approval as a charitable or#anisation...............................................1$
%. Criteria for determinin# a finance lease..............................................................11
&. Determination of related persons........................................................................11
8. Commercial rental establishment.......................................................................12
!. Condos leased collectivel.................................................................................14
1$. 'eturnable container...........................................................................................14
11. (xchan#e of information....................................................................................1"
12. )*T +orms.........................................................................................................1"
&ART II ' A&&LI)ATION OF RATES OF TAX 1*
13. ,ero rated exports..............................................................................................1"
14. -uppl of taxable activit as a #oin# concern....................................................1"
1". -pecial rated supplies b hotel and similar establishment..................................1&
1%. (xempt suppl of electricit and .ater..............................................................18
1&. (xempt financial services...................................................................................1!
&ART III ' REGISTRATION 21
18. (xempt imports b nationals returnin# home. ...................................................21
1!. Time limit for entr of exempt imports of returnin# nationals. .........................23
2$. )iolation of conditions for exemption b returnin# nationals. ..........................24
21. Certificates/ notices and declarations.................................................................24
&ART IV' TRANSA)TIONS INVOLVING A SU&&L( OR IM&ORT OF
GOODS OR SERVI)ES 2*
22. *pplication of a portion of #oods or services to a different use.........................2"
23. -uppl of #oods or services to emploees..........................................................2%
24. Determination of value of #oods or services applied to a different use..............2%
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Version: November 4, 2013
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)*23( *DD(D T*4 '(532*TI67-/ 2$13
2". Determination of value of suppl b advance pament of specified #oods or
services...............................................................................................................2&
2%. )alue of a suppl of capital #oods on cancellation of re#istration......................28
2&. Classification of transaction as a mixed suppl or a mixed import.....................28
28. 8rokera#e services.............................................................................................2!
2!. 0lace of suppl of services rendered b overseas portion of a business............2!
3$. Discount coupons...............................................................................................2!
&ART V ' IN&UT TAX DEDU)TIONS AND VAT DO)UMENTS 30
31. -ale and input tax deduction b a re#istrant dealer of second1hand vehicles.. . . .3$
32. *pportionment .here both taxable and exempt supplies are made....................31
33. +inancial institutions..........................................................................................32
34. )*T invoice/ )*T sales receipt/ tax credit note and tax debit note.....................33
&ART VI ' EX)ESS )REDITS AND REFUNDS 34
3". 0roof of excess credits and issuance of refunds..................................................34
3%. 0rocedure for claim of refunds b exempt persons............................................3"
&ART VII ' TAX+EX)LUSIVE &RI)ING 3,
3&. Tax1exclusive pricin#.........................................................................................3&
&ART VIII ' OFFEN)ES, &ENALTIES, ADMINISTRATIVE FINES AND
-ARNING LETTERS 3.
38. 5eneral offences.................................................................................................38
3!. 6ffences b )*T officer.....................................................................................3!
4$. 6ffences b )*T re#istrant................................................................................3!
41. 6ffences b taxable person................................................................................41
42. 6ffences b importer..........................................................................................42
43. 6ffences b companies/ aiders and abettors.......................................................43
44. *dministrative fines...........................................................................................43
4". 0rocedure for imposition of administrative fines................................................44
4%. *ssessment and collection of fines.....................................................................4%
4&. 9arnin# letters...................................................................................................4%
48. 2imitation periods for prosecution of offences...................................................4%
&ART IX ' MIS)ELLANEOUS &ROVISIONS 4,
4!. 6b:ection to decision of the )*T Commissioner................................................4&
"$. Transitional provisions.......................................................................................4&
FIRST S)/EDULE 0REGULATION 441 4,
*D;I7I-T'*TI)( +I7(- 4&
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SE)OND S)/EDULE 0REGULATION 121 **
)*T +6';- ""
T/IRD S)/EDULE 0REGULATION 2,1 *.
C*2C32*TI67 6+ )*23( 6+ * D((;(D -3002< 6+ C*0IT*2 566D- 67
C*7C(22*TI67 6+ '(5I-T'*TI67 "8
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VALUE ADDED TAX A)T
NO2 +++ OF 2013
T3e M$n$%er, $n e4er#$%e !" 3e 5!6er% #!n"erre7 89 %e#$!n :3 !" 3e Va;<e
A77e7 Ta4 A#, ma=e% 3e "!;;!6$ng Reg<;a$!n% >
PART I PRELIMINARY
1. Citation.
=1> These 'e#ulations ma be cited as the )alue *dded Tax 'e#ulations/
2$13.
=2> These 'e#ulations shall come into force on the 1
st
da of ?ul/ 2$14.
2. Interpretation.
=1> In these 'e#ulations/ unless the context other.ise re@uires A
?A#@ means the )alue *dded Tax *ct =No. --- of 2013>B
?an#$;;ar9 ran%5!r %erA$#e%@ means A
=a> stevedorin# servicesB
=b> lashin# and securin# servicesB
=c> car#o inspection servicesB
=d> preparation of customs documentationB
=e> container handlin# servicesB
=f> stora#e of transported #oods or #oods to be transportedB
?#a5$a; g!!7%@ means an asset/ or a component of an asset .hich is A
=a> of a character sub:ect to an allo.ance for depreciation/ or
comparable deduction/ for purposes of financial accountin#B
and
=b> used in the course or furtherance of a taxable activitB
?#!mmer#$a; rena; e%a8;$%3men@ has the meanin# set out in re#ulation
8B
?7!me%$# "$nan#$a; %erA$#e%@ means financial services supplied .ithin
The 8ahamas to a person .ho is not treated as a non1resident for
purposes of the (xchan#e Control 'e#ulations
1
.
1
Sub. Leg:,Vol VI, Ch. 360
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?76e;;$ng@ means a buildin#/ premises/ structure/ or other place/ or an
part thereof/ used or intended for use predominantl as a place of
residence or abode of a natural person to#ether .ith an
appurtenances belon#in# thereto or en:oed there.ith/ excludin# a
commercial rental establishmentB
?e7<#a$!n %erA$#e%@ means tuition or instruction for students provided
b an institution re#istered .ith the ;inistr of (ducation/ the
Department of -ocial -ervices/ or the 0ublic Cospitals *uthorit
bein# A
=a> a pre1primar/ primar/ or secondar schoolB
=b> a technical colle#e/ communit colle#e/ or universitB
=c> an educational institution established for the promotion of
adult education/ vocational trainin#/ or technical educationB
=d> an institution established for the education or trainin# of
phsicall or mentall handicapped personsB
=f> an institution established for the trainin# of sports personsB
?E4#$%e A#@ means the (xcise *ct =Ch. 293A>B
?e45!r #!<nr9@ means an countr or place outside The 8ahamas/
excludin# a countr or place desi#nated b the ;inister b order
not to be an export countrB
?e45!re7 "r!m T3e Ba3ama%@ means/ in relation to a suppl of
movable #oods b a re#istrant under a sale or credit a#reement/
#oods A
=a> consi#ned or delivered b the re#istrant supplier to the
recipient at an address in an export countr as evidenced b
documentar proof acceptable to the )at Commissioner or
delivered b the re#istrant to the o.ner or charterer of an
exportin# ship or aircraft for use or consumption in such ship
or aircraftB
=b> .hich immediatel before bein# put on board the exportin#
ship or aircraft are produced to the Comptroller of Customs
for examinationB
=c> in respect of .hich/ on re@uest b the Comptroller of
Customs/ such samples as the Comptroller ma re@uire for
testin# or an other purpose are made availableB
=d> in relation to .hich the master or commander of the
exportin# ship or aircraft/ or such other person as the master
or commander ma authoriDe/ certifies on the document on
.hich such #oods are entered that the have been received on
board the exportin# ship or aircraftB
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=e> in respect of .hich the particulars are included in the car#o
manifest of the exportin# ship or aircraftB
=f> .hich have not been/ nor .ill be/ re1imported into The
8ahamas b the re#istrant supplierB
?"a$r mar=e Aa;<e@ has the meanin# ascribed in re#ulation 3B
?"$nan#$a; %erA$#e%@ includes A
=a> #rantin#/ ne#otiatin#/ and dealin# .ith loans/ credit/ credit
#uarantees/ or an securit for mone/ includin# the
mana#ement b the #rantor of loans/ credit and credit
#uaranteesB
=b> transactions concernin# mone/ deposit and current accounts/
paments/ transfers/ debts/ che@ues/ or ne#otiable
instruments/ excludin# debt collection and factorin#B
=c> transactions relatin# to financial derivatives/ for.ard
contracts/ options/ and similar arran#ementsB
=d> transactions relatin# to shares/ stocks/ bonds/ and other
securities/ excludin# custod servicesB
=e> mana#ement of investment fundsB
=f> medical and life insurance and reinsurance transactions/
includin# related services performed b insurance brokers
and insurance a#ents in connection .ith medical and life
insurance and reinsurance transactionsB
=#> other services provided b a financial service provider .ithin
the scope of its businessB
?"$nan#$a; %erA$#e% 5r!A$7er@ means a person .ho provides financial
services in the course or as part of a taxable activit carried on b
such personB
?3!e;@ means a hotel/ motel/ inn/ boardin# house/ #uest house/ hostel/ or
similar establishment in .hich lod#in# is re#ularl or normall
provided A
=a> to five or more personsB
=b> at a dail/ .eekl/ monthl/ or other periodic char#eB
?$ne;;e#<a; 5r!5er9 r$g3%@ means a patent/ desi#n/ trademark/
copri#ht/ kno.1ho./ confidential information/ trade secret/ or
similar ri#htB
?$nerna$!na; "$nan#$a; %erA$#e%@ means financial services supplied
.ithin The 8ahamas to a person treated as a non1resident for
purposes of the (xchan#e Control 'e#ulations
2
B
2
Sub. Leg:,Vol VI, Ch. 360
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?$nerna$!na; ran%5!r %erA$#e%@ means services/ includin# ancillar
transport services/ comprisin# A
=a> the transport of passen#ers b road/ .ater/ or air A
=i> from a place outside The 8ahamas to another place
outside The 8ahamas .here the transport/ or part of
the transport/ is across the territor of The 8ahamasB
=ii> from a place outside The 8ahamas to a place .ithin
The 8ahamasB
=iii> from a place .ithin The 8ahamas to a place outside
The 8ahamasB
=b> the transport of #oods b road/ .ater/ or air A
=i> from a place outside The 8ahamas to another place
outside The 8ahamas .here the transport/ or part of
the transport/ is across the territor of The 8ahamasB
=ii> as part of a sin#le voa#e/ directl from a place .ithin
The 8ahamas to a place outside The 8ahamasB
?me7$#a; %erA$#e%@ means a service A
=a> .hich is a medical/ dental/ nursin#/ convalescent/
rehabilitation/ mid.ifer/ paramedical/ or other similar
serviceB
=b> performed b/ or under the supervision and control of/ a
person .ho is licensed in accordance .ith the ;edical *ct
=Ch. 224>/ or the Dental *ct =Ch. 226> and in possession of a
valid business licence to provide such services in accordance
.ith the 8usiness 2icence *ct =No. 30 of 2011>B
=c> .hich is not cosmetic in natureB
?reg$%ran 7ea;er@ means a re#istrant .ho carries on a taxable activit
consistin#/ in .hole or in part/ of the suppl or import of second1
hand vehiclesB
?re%$7en$a; a##!mm!7a$!n@ includes accommodation in a condo/
house/ flat/ apartment/ timeshare/ room/ caravan/ houseboat/ tent/ or
caravan or campin# siteB
?%5e#$a; rae7@ means char#eable to tax at a ten percent rate of the value
of the suppl or importB
?%an7ar7 rae7@ means char#eable to tax at a fifteen percent rate of the
value of the suppl or importB
?Tar$"" A#@ means the Tariff *ct =Ch. 295>B
?Ber! rae7@ means char#eable to tax at a Dero percent rate of the value of
the suppl or importB
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=2> 9ords and phrases not defined in para#raph =1> and used in these
'e#ulations/ unless the context other.ise re@uires/ have the same
meanin# ascribed to them in the *ct.
3. Determination of fair market vale an! "a#$ vale.
=1> * suppl made for consideration includes a suppl A
=a> .here the supplier directl or indirectl receives a pament for the
suppl from the recipient or an other person/ includin# a pament
.holl or partl in mone or kindB
=b> made bet.een related persons for no considerationB
=c> of #oods for use onl as trade samplesB
=d> made throu#h the application to a different use of #oods or services
ac@uired for use in a taxable activitB and
=e> made on the disposition of a taxable activit as a #oin# concern to
the extent the recipient ac@uires the #oods or services for a purpose
unrelated to the makin# of taxable supplies and such purpose relates
to more than ten percent of the total taxable activit ac@uired b the
recipient.
=2> +or the purposes of the *ct and these 'e#ulations/ the fair market value of
a suppl or import of #oods or services at a #iven date is A
=a> the consideration in mone .hich the suppl or import/ bein# a
suppl or import freel offered and made bet.een persons .ho are
not related persons/ .ould #enerall fetch if supplied or imported in
similar circumstances at such date in The 8ahamasB
=b> .here the fair market value cannot be determined under sub1
para#raph =a>/ the consideration in mone .hich a similar suppl or
similar import/ bein# a suppl or import freel offered and made
bet.een persons .ho are not related persons/ .ould #enerall fetch
if supplied or imported in similar circumstances at such date in The
8ahamasB
=c> .here the fair market value cannot be determined under sub1
para#raphs =a> or =b>/ determined in accordance .ith a method
approved b the )*T Commissioner .hich provides a sufficientl
ob:ective approximation of the consideration in mone .hich could
be obtained for such suppl or import had the suppl or import been
freel offered and made bet.een persons .ho are not related
personsB and
=d> determined in accordance .ith the *ct at the time of the suppl or
import.
=3> +or purposes of para#raph =2> A
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=a> a similar import/ in relation to an import of #oods or services/
means #oods or services produced in the same countr .hich/
althou#h not alike in all respects/ have the characteristics and like
component materials .hich enables them to perform the same
functions and to be commerciall interchan#eableB and
=b> a similar suppl/ in relation to a suppl of #oods or services/ means
an other suppl of #oods or services .hich/ in respect of the
characteristics/ @ualit/ @uantit/ functional components/ materials/
and reputation of the first1mentioned #oods or services/ is the same
as/ or closel or substantiall resembles/ that first1mentioned suppl
of #oods or services.
=4> +or the purposes of the *ct and these 'e#ulations/ the cash value in
relation to a suppl of #oods under a credit a#reement is A
=a> .here the seller or lessor is a bank or other financial institution/ an
amount e@ual to the sum of A
=i> the consideration paid b the bank or institution for the #oods
or the fair market value of the suppl of the #oods to the
bank or institution/ .hichever is the #reaterB
=ii> an consideration borne b the bank or institution for the
erection/ construction/ assembl/ or installation of the #oodsB
=b> .here the seller or lessor is a dealer/ an amount e@ual to the sum of
A
=i> the consideration at .hich the #oods are normall sold b the
dealer for cashB and
=ii> an consideration borne b the dealer for the erection/
construction/ assembl/ or installation of the #oods.
%. Ta&a'le a"tivit(.
=1> * ministr/ department/ statutor bod/ a#enc/ local #overnment council/
or other entit of 5overnment carries on a taxable activit .hen it A
=a> conducts auctionsB
=b> hires e@uipmentB
=c> rents spaceB or
=d> en#a#es in an activit commonl conducted for profit.
=2> The issuance of licences b an entit of 5overnment referred to in
para#raph =1> is not a taxable activit.
=3> *n thin# done in connection .ith the commencement or termination of a
taxable activit is treated as carried out in the course or furtherance of that
taxable activit.
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=4> -ub:ect to these 'e#ulations/ an isolated suppl of propert used as a
d.ellin# made b a person independent of an other taxable activit is not
treated as a taxable activit.
="> * suppl of a condo that is part of a hotel complex/ includin# a condo that
is part of a rental pool/ is made in the course or furtherance of a taxable
activit re#ardless of the value of the taxable supplies associated .ith
such condo .ithin an period of ninet das.
). Criteria for approval a# a "$arita'le or*ani#ation.
=1> The ;inister ma/ in the ;inisterEs discretion/ pursuant to section ""=2>=a>
of the *ct approve as a charitable or#anisation a societ/ association/ or
other or#anisation that A
=a> is carried on for purposes other than profit or #ain to a proprietor/
member or shareholder of such or#anisationB
=b> under its memorandum/ articles of association/ .ritten rules/ or
other document constitutin# or #overnin# its activities is A
=i> re@uired to utilise an assets or income solel in furtherance
of its aims and ob:ectsB
=ii> prohibited from transferrin# an part of its assets or income
directl or indirectl so as to profit a person other than b
.a of the A
=*> provision of charitable assistanceB
=8> pament in #ood faith of reasonable remuneration to
an officer or emploee for services rendered to such
or#anisationB and
=iii> on its .indin#1up or li@uidation/ re@uired to #ive or transfer
to another societ/ association/ or other or#anisation/ havin#
similar ob:ects its assets remainin# after the satisfaction of its
liabilities.
=2> *n or#anisation approved b the ;inister pursuant to subsection =1> must
A
=a> be or#anised exclusivel to carr out/ and in fact carr out/ relief of
povert or educational/ charitable/ social .elfare/ civic
improvement/ or other similar activities/ in the public interestB
=b> not involve itself in partisan political activitiesB
=c> not receive more than fift percent of its funds from one person or
or#anisation/ or from a #roup or or#anisation that does not deal .ith
each other at armFs len#thB
=d> disburse annuall more than fift percent of contributions received
to.ards the attainment of activities referred to in para#raph =a>B
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=e> not make its annual disbursement @uota referred to in para#raph =d>
b the exchan#e of #ifts bet.een other approved charities/ persons/
or#anisations or other le#al personsB
=f> be in compliance .ith an la.s in The 8ahamas #overnin#
charitiesB and
=#> be resident in The 8ahamas durin# the tax ear.
+. Criteria for !eterminin* a finan"e lea#e.
+or the purposes of the *ct and these re#ulations/ a finance lease in relation to
#oods is a lease A
=a> havin# a term .hich exceeds sevent1five percent of the expected
life of the #oodsB
=b> .hich provides for transfer of o.nership at the expiration of the
lease term or #rants the lessee an option to purchase the #oods for a
fixed or determinable price at the expiration of the lease termB
=c> .here the estimated residual value of the #oods to the lessor at the
expiration of the lease term/ includin# the period of an option to
rene./ is less than t.ent percent of the fair market value of the
#oods at the commencement of the lease termB or
=d> .here the #oods are custom1made for the lessee and/ at the
expiration of the lease term/ .ill not be usable b anone other than
the lessee.
,. Determination of relate! per#on#.
=1> +or the purposes of the *ct and these 'e#ulations/ a person * is related to
a person 8/ and vice versa/ .here A
=a> * is a natural person and 8 is a relative of *B
=b> * is a trust and 8 is a person .ho is or ma be a beneficiar in
respect of * or .hose relative is or ma be a beneficiarB
=c> * is a partnership or compan limited b shares and 8 is a member
of such partnership or compan and 8/ to#ether .ith other persons
.ho are related persons under this section/ o.ns b .a of shares
or other membership interests t.ent1five percent or more of the
ri#hts to income or capital of such partnership or companB
=d> * is a shareholder and 8 is a compan limited b shares and */
to#ether .ith other persons .ho are related to * under this section
A
=i> controls b .a of shares t.ent1five percent or more of the
votin# po.er in 8B
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=ii> o.ns t.ent1five percent or more of the ri#hts to dividends
or of the ri#hts to capitalB
=e> * is a compan and 8 is a compan and a third person C/ either
alone or to#ether .ith persons .ho are under this section related to
C A
=i> controls t.ent1five percent or more of the votin# po.er in *
and 8B
=ii> o.ns t.ent1five percent or more of the ri#hts to dividends
or of the ri#hts to capital in * and 8B
=f> * is a non1resident branch or home office of a compan operatin#
in The 8ahamas and 8 is a resident branch or home office of the
same compan in the 8ahamas.
=2> +or the purposes of sub1para#raphs =c>/ =d> and =e> of para#raph =1>/ a
person o.ns/ on a pro rata basis/ shares or other membership interests
.here such shares or interests are o.ned and controlled b such person
indirectl throu#h one or more interposed persons.
=3> +or the purposes of this re#ulation A
=a> a relative 8 in relation to a natural person * is A
=i> the spouse or child of *B
=ii> an ancestor of * or lineal descendant of *Es #randparent/
stepfather/ stepmother/ or stepchildB
=iii> the spouse of a person referred to in sub1sub1para#raph =ii>B
and
=b> an adopted child is treated as a natural child of the adopter.
-. Commer"ial rental e#ta'li#$ment.
=1> +or the purposes of the *ct and these 'e#ulations/ a commercial rental
establishment includes A
=a> accommodation in a hotelB
=b> residential accommodation of an kind .hich constitutes an asset/
includin# a leased asset/ of a business undertakin# or a separatel
identifiable part of a business undertakin# carried on b an person
.ho A
=i> leases or holds for lease in the course of such business
undertakin# the accommodation as residential
accommodationB and
=ii> in respect of each occupant/ re#ularl or normall leases or
holds for lease the accommodation as residential
accommodation for continuous periods not exceedin# fort1
five calendar dasB
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=c> residential accommodation in a condo/ timeshare/ or house/
ac@uired b a non1resident under the International 0ersons
2andholdin# *ct =Ch. 140> .here the permit specifies that such
accommodation .ill be used for rental purposesB
=d> residential accommodation in a condo/ timeshare/ or house .hich
A
=i> is not part of a hotel or resort complexB
=ii> is ac@uired b a non1resident under the International 0ersons
2andholdin# *ct =Ch. 140> .hose permit specifies that such
accommodation .ill be used for rental purposesB
=e> residential accommodation in a condo/ house/ flat/ apartment/ or
room/ other than accommodation referred to in sub1para#raphs =a>/
=b>/ =c> or =d>/ .hich is A
=i> in respect of each occupant of such condo/ house/ flat
apartment/ or room/ re#ularl or sstematicall leased or held
for lease as residential accommodation for continuous
periods not exceedin# fort1five calendar dasB
=ii> leased .ith furnishin#s and utilities provided b the lessorB or
=f> an other accommodation .hich the ;inister ma/ b order/
desi#nate as a commercial rental establishment.
=2> * commercial rental establishment pursuant to para#raph =1>/ unless
desi#nated b the ;inister pursuant to sub1para#raph =f>/ does not include
accommodation in a A
=a> boardin# establishment or hostel operated b A
=i> an emploer not for the profit of an person but/ solel or
predominantl/ for the benefit of A
=*> the emploees of such emploerB
=8> a related person of such emploerB
=C> the dependants of a person referred to in =*> or =8>B
=ii> a local #overnment council not for the profit of an personB
or
=b> re#istered hospital/ maternit home/ nursin# home/ convalescent
home/ or clinic.
=3> -ub:ect to re#ulation 13/ the operation of a commercial rental
establishment is a taxable activit comprisin# a taxable suppl of services
and/ .here the operation satisfies the re#istration threshold/ the o.ner of
such establishment becomes a taxable person re@uired to re#ister as such
under the *ct.
0a#e 1 13
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=4> The conversion b the o.ner of a commercial rental establishment to a
d.ellin# A
=a> is a taxable supplB and
=b> ma in the discretion of the )*T Commissioner be treated as an
exempt suppl .here a taxable person o.nin# such establishment
submits to the Central 'evenue *#enc/ prior to the conversion/ a
.ritten declaration in +orm 7o. 1 of the intent to convert such
establishment to a d.ellin#.
="> * commercial rental establishment in respect of .hich the o.ner fails to
submit to the Central 'evenue *#enc/ prior to a conversion/ a .ritten
declaration of the intent to convert such establishment to a d.ellin#/
continues to be a commercial rental establishment for )*T purposes.
.. Con!o# lea#e! "olle"tivel(.
=1> 0ursuant to section " of the *ct/ the leasin# of condos or other residential
accommodations that are part of a pool or other collective rental
a#reement is a taxable activit comprisin# a taxable suppl of services
and/ .here such activit satisfies the re#istration threshold/ the
administrator of such accommodations must re#ister as a taxable person
under section 18 of the *ct.
=2> The pament of )*T b an administrator pursuant to para#raph =1> on the
suppl of an accommodation in the pool relieves the o.ner of the
accommodation of the liabilit for )*T on the taxable supplies associated
.ith such accommodation.
=3> The o.ner of an accommodation under this re#ulation A
=a> is liable/ .here the administrator fails to pa )*T on the suppl of
such accommodation/ for )*T on taxable supplies associated .ith
the accommodationB and
=b> must pa an )*T paable b the due date for pament.
=4> +or the purposes of this re#ulation/ the administrator is the hotel or other
person responsible/ in accordance .ith a collective rental a#reement/ for
the collective administration of condos or other residential
accommodations formin# part of a pool.
1/. Retrna'le "ontainer.
=1> +or the purposes of the *ct/ a returnable container is a container that is
supplied on pament of a deposit under an arran#ement .hereb the
container/ .here in a suitable condition/ is returnable for a refund or credit
of the deposit.
=2> * returnable container pursuant to para#raph =1> includes A
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=a> heav1dut containers for industrial applicationB
=b> oil drumsB
=c> #as or ox#en clindersB
=d> pallet containersB
=e> shippin# and protective stora#e binsB
=f> such other containers as ma be approved b the Commissioner.
11. E&"$an*e of information.
=1> The Central 'evenue *#enc ma/ in order to facilitate the efficient
mana#ement of taxes and taxpaer compliance/ enter into a ;emorandum
of 3nderstandin# in +orm 7o. 2 .ith other 5overnment entities to #overn
in accordance .ith section !2 of the *ct the tpe of information .hich
ma be exchan#ed and the circumstances in .hich such information ma
be exchan#ed.
=2> 7ot.ithstandin# para#raph =1>/ the Central 'evenue *#enc ma .ithout
enterin# into a ;emorandum of 3nderstandin# exchan#e information
.ith the Customs Department on a re#istrantEs uni@ue )*T identification
number.
12. 0AT 1orm#.
* reference made in these 'e#ulations to a specific numbered form is a
reference to that form as prescribed b and set out in the Second Schedule to
these 'e#ulations.
PART II APPLICATI2N 21 RATE3 21 TA4
13. 5ero rate! e&port#.
=1> *n exporter must/ in order to obtain Dero ratin# for the export of #oods
and related services/ identif the #oods at the port of exit and present such
documentar proof as ma be re@uired b the Comptroller of Customs.
=2> The professional services specified in section ! of 0art II of the Second
Schedule to the *ct are Dero1rated onl .here the supplier provides
documentar proof/ acceptable to the )*T Commissioner/ that the services
are used or the benefit or advanta#e is obtained outside The 8ahamas.
1%. 3ppl( of ta&a'le a"tivit( a# a *oin* "on"ern.
+or the purposes of a transfer of a business as a #oin# concern pursuant to
sections 2"=2>/ 28=2> and =3>/ 3$=8>/ 3%=12> of the *ct A
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=a> a #oin# concern is not a dormant or prospective business but an
income1producin# activit capable of separate operation that is in
fact operational and capable of bein# carried on .ithout
interruption after the transferB
=b> a transfer @ualifies as a transfer of a #oin# concern .here it
constitutes the entire taxable activit of the supplier that is a #oin#
concernB or a portion of such taxable activit .here capable of
bein# carried on as a #oin# concernB
=c> a suppl can constitute a transfer of a #oin# concern even .here the
transferred business is not profitable/ or is bein# transferred to a
li@uidator/ receiver/ trustee in bankruptc/ or other person appointed
upon the insolvenc of a re#istrantB
=d> the suppl is Dero1rated onl .here the transfer takes place on or
after the date the *ct comes into forceB
=e> a suppl of a #oin# concern is Dero rated .ithin 0art I of the !"#$
Schedule to the *ct even .here the suppl is to a person .ith no
previous interest in the businessB
=f> Dero1ratin# applies to a suppl of an existin# business that involves
onl a chan#e of le#al status or form of doin# business/ such as
from a partnership to an incorporated companB
=#> it is not necessar for the transferee to operate the particular
income1producin# activit ac@uired/ so lon# as the activit is
capable of separate operationB
=h> the suppl of a vacant factor buildin# held as an investment does
not @ualif for Dero1ratin# as the suppl of a #oin# concernB
=i> the transfer of machiner and a factor buildin# that have been used
to manufacture shippin# boxes @ualifies as a suppl of a #oin#
concernB
=:> the suppl is not Dero rated unless a notice in .ritin# in +orm 7o. 3
si#ned b both the transferor and transferee is filed .ith the )*T
Commissioner .ithin t.ent1one calendar das after the suppl
takes place and contains the details of the supplB
=k> the t.ent1one calendar da period referred to in sub1para#raph =:>
.ithin .hich the notice must be filed is determined in accordance
.ith the provisions of section 31 of the *ctB
=l> the )*T Commissioner ma re@uire additional information from the
transferor or transferee/ or bothB or ma .aive the re@uirement to
value individual assets of nominal valueB
=m> .here the transferor cancels its re#istration as a result of a Dero1
rated transfer of a #oin# concern A
=i> the transferor must compl .ith section 2% of the *ctB
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=ii> in accordance .ith section 3$=%> of the *ct/ the #oods .hich
are not transferred as part of the #oin# concern constitute a
suppl of the #oods b the transferor at the value prescribed
in re#ulation G and re#ulation GB and
=n> sub1para#raph =m> does not appl to #oods and intellectual propert
in respect of .hich the transferor has not been allo.ed an input tax
deduction under the *ct and these 'e#ulations.
1). 3pe"ial rate! #pplie# '( $otel an! #imilar e#ta'li#$ment.
=1> * suppl b a hotel or similar establishment is char#eable to )*T at the
special rate of ten percent of its value .here the hotel or similar
establishment is re#istered and licensed b the Cotel 2icensin# *uthorit
and the suppl is of A
=a> accommodationsB
=b> services included in the room rate for accommodationsB or
=c> food and bevera#es rendered .ithin the hotel or similar
establishment.
=2> * similar establishment pursuant to para#raph =1> includes a facilit A
=a> provided b a supplier for sleepin# accommodation for individuals
for overni#ht or short1term stas of less than a monthB and
=b> comprisin# an apartment or room not located in a private home
leased for a month or more .here the lessor provides utilities or
furnishin#s for the term of the lease.
=3> +or the purposes of para#raph =2> A
=a> a sta b a #uest for more than a month in a rare or unusual
circumstance does not b itself forfeit the special rated status of an
accommodation referred to in sub1para#raph =a>B and
=b> a private home referred to in sub1para#raph =b> is the residence of
the lessor .here the home is a sin#le famil d.ellin#.
=4> In this re#ulation A
=a> the value of a suppl of accommodation includes all A
=i> char#es imposed for the accommodationB
=ii> non1discretionar amounts added to the accommodation rate/
includin# mandator service char#es/ resort lev/ and
#ratuities for hotel staffB
=b> the special rate does not appl to a suppl of services A
=i> rendered outside the room or suite comprisin# the
accommodation bein# supplied other than a suppl of food
and bevera#esB
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=ii> rendered in the room or suite comprisin# the accommodation
for .hich a separate char#e is imposed/ such as a char#e for
internet access.
="> * hotel or similar establishment .hich bundles services to .hich the
special rate applies .ith other services to .hich the special rate does not
appl A
=a> must apportion the services in relation to the fair market value of
eachB and
=b> is not re@uired to apportion the services .here the value of the
services to .hich the special rate does not appl does not exceed
ten percent of the value of the bundled accommodation services.
=%> This re#ulation applies to accommodations provided for #uests or
occupants to sleep or rest and/ not.ithstandin# that #uests or occupants
sleep .ithin them/ does not appl to accommodations provided
predominantl for commercial use includin# A
=a> business meetin#sB
=b> merchandise displas or trade exhibitionsB
=c> ban@uets or similar events.
1+. E&empt #ppl( of ele"tri"it( an! 6ater.
=1> * suppl of electricit is exempt .here A
=a> such suppl is made to a residential d.ellin#B
=b> in relation to an established customer/ the total electricit supplied
to the residential d.ellin# on a monthl basis does not exceed
111111111111 kilo.atts of electricit/ commencin# .ith the billin#
period that be#ins on or after the date the *ct comes into forceB or
the avera#e monthl consumption .ithin the precedin# calendar
ear did not exceed 11111111111111111kilo.atts of electricitB and
=c> in relation to a ne. customer/ the supplier estimates that the
avera#e annual consumption .ill not exceed 1111111111111111111111
kilo.atts of electricitB or that the monthl consumption is likel to
fall .ithin =b>.
=2> * suppl of .ater is exempt .here A
=a> such suppl is made to a residential d.ellin#B
=b> in relation to an established customer/ the total .ater supplied to the
residential d.ellin# on a @uarterl basis does not exceed ten
thousand #allons of .ater/ commencin# .ith the billin# period that
be#ins on or after the date the *ct comes into forceB or the avera#e
@uarterl consumption .ithin the precedin# calendar ear did not
exceed ten thousand #allons of .aterB and
0a#e 1 18
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=c> in relation to a ne. customer/ the supplier estimates that the
avera#e annual consumption .ill not exceed ten thousand #allons
of .ater per @uarter.
1,. E&empt finan"ial #ervi"e#.
=1> 0ursuant to 0art II of the %h!"d Schedule to the *ct and sub:ect to this
re#ulation/ exempt financial services are A
=a> the insurances services described in para#raph =1>B
=b> domestic supplies of financial services A
=i> .hich are rendered .ithout an explicit fee/ commission/ or
similar char#e/ other than discountin# costB or
=ii> on .hich stamp taxes are paable.
=2> *n exemption from a char#e of )*T applies to domestic financial
intermediation services .here such services are rendered for an implicit
fee provided A
=a> a supplier .ho makes a taxable suppl of #oods on credit does not
include the finance char#es in the total amount paable b the buer
in instalmentsB
=b> the supplier under sub1para#raph =a> lists the finance char#es
separatel from the consideration for the #oodsB and
=c> the services are other.ise in accordance .ith the re@uirements of
this re#ulation.
=3> * taxable person/ such as a credit department of a retail shop/ ma render
exempt financial intermediation services referred to in para#raph =2> even
.here it is not a re#istered or licensed bank or financial services provider.
=4> * domestic financial service is not exempt from a char#e of )*T/ even
.hen rendered .ithout an explicit or implicit fee or other similar char#e/
and .hether or not supplied b or to a financial service provider in
connection .ith an exempt financial service/ .here such service consists
of A
=a> le#al/ accountin#/ record packa#in# services/ and tax a#enc
services/ includin# advisor servicesB
=b> safe custod for mone or documentsB
=c> brokera#e servicesB
=d> debt collection or factorin# servicesB and
=e> trustee servicesB
="> +or purposes of para#raph =4> A
0a#e 1 1!
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=a> the accountin# and record packa#in# services referred to in sub1
para#raph =a> are services .hich ma be provided to a financial
institution renderin# exempt financial services and include A
=i> services related to a financial clearin# sstem that ma be
part of the settlement processB
=ii> the postin# of financial transactions to or the maintenance of
the accounts of the financial institutionFs customersB
=iii> the renderin# of services ancillar to the services under sub1
sub1para#raphs =i> and =ii>B
=b> in relation to the factorin# services referred to in sub1para#raph =d>
A
=i> the mere ac@uisition of a debt is not a taxable transaction/
includin# debt ac@uired b a factorB and
=ii> the services related to debt recover/ liti#ation/ and the
mana#ement of the recover of the amount due from debtors
are taxable/ includin# sales accountin# services under a
factorin# arran#ement and other services related to factorin#.
=%> +or the avoidance of doubt/ domestic financial services .hich are not
exempt form a char#e of )*T .here a bank or financial services provider
char#es an explicit fee include A
=a> the transmission of mone or monetar value in an formB
=b> the issuance/ sale or redemption of mone orders or travellerFs
che@uesB
=c > che@ue cashin#B
=d> currenc exchan#e issuance/ sale or redemption of mone orders or
travellerFs che@uesB and
=e> currenc exchan#e and pa da advances.
=&> * suppl of domestic financial services that is exempt from a char#e of
)*T is/ .hen supplied directl in connection .ith the international
transport of #oods/ treated as a Dero rated export of financial services.
=8> In this re#ulation A
Hche@ueI includes a postal order/ mone order/ che@ue/ or an other order
or authoriDation/ .hether in .ritin#/ b electronic means/ or
other.ise/ to a financial institution to credit or debit an accountB
HcurrencI means a banknote or other currenc of an countr/ other than
.hen used as a collectorFs piece/ investment article/ item of
numismatic interest/ or other.ise than as a medium of exchan#eB
Hdiscountin# costI means the amount a person is char#ed in the nature of
interest .hen obtainin# financin# usin# as securit its invoices or
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receivables but excludes an service fee the lender or discounter
char#es to administer the finance facilit.
PART III RE7I3TRATI2N
1-. E&empt import# '( national# retrnin* $ome.
=1> * national .ho is returnin# home for permanent residence ma appl for
an exemption from a char#e of )*T under 0art III of the %h!"d Schedule to
the *ct .here such national A
=a> has a valid passport establishin# his nationalit as a citiDen or
permanent resident of The 8ahamasB
=b> has documents acceptable to the )*T Commissioner and the
Comptroller of Customs .hich evidence such personEs A
=i> residential status outside The 8ahamas for at least the
previous ten earsB
=ii> intention to re1establish permanent residence in The
8ahamasB and
=c > satisfies the re@uirements of para#raph =%>.
=2> Documents acceptable to the )*T Commissioner and the Comptroller of
Customs pursuant to sub1sub1para#raph =i> of sub1para#raph =b> include
A
=a> entries in a forei#n passportB
=b> an alien resident cardB or
J a .ork permit accompanied b a letter from an emploer abroad.
=3> Documents acceptable to the )*T Commissioner and the Comptroller of
Customs pursuant to sub1sub1para#raph =ii> of sub1para#raph =b> include
proof of A
=a> retirementB
=b> o.nership of a d.ellin# home or land in The 8ahamasB or
=c> a planned investment in The 8ahamas.
=4> *n exemption under para#raph =1> applies and is limited to the A
=a> returnin# national and his famil members .ho are also returnin#
nationalsB and
=b> famil members .ho are the husband/ .ife/ or children under
ei#hteen ears of a#e/ of the returnin# national.
0a#e 1 21
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="> * returnin# national must/ in order to @ualif for an exemption under
para#raph =1> A
=a> be at least ei#hteen ears of a#eB
=b> have been a resident outside The 8ahamas continuousl for at least
ten ears immediatel prior to his returnB
=c> be returnin# permanentl to The 8ahamasB
=d> retain o.nership and use of the #oods exempted from )*T for his
personal useB
=e> not sell/ lend/ hire out or other.ise dispose of an #oods #ranted
exemption under this re#ulation .ithin a period of five ears after
re1establishin# residence status in The 8ahamasB and
=f> not previousl have received an exemption from )*T under section
% of 0art III of the %h!"d Schedule to the *ct.
=%> * motor vehicle referred to in para#raph =2> of section % of 0art III of the
%h!"d Schedule to the *ct is exempt from )*T provided A
=a> .here the vehicle .as purchased abroad/ it .as purchased b the
national before returnin# to The 8ahamas and imported from the
countr .here he resided immediatel before returnin# to The
8ahamasB
=b> .here the vehicle .as purchased in The 8ahamas/ it .as purchased
b the national from a motor vehicle dealer licensed in The
8ahamas .ho sold it to the returnin# national directl from a
Customs bonded .arehouseB
=c> the vehicle .as ac@uired other than b inheritance and the importer
provides documentar proof acceptable to the )*T Commissioner
and the Comptroller of Customs that the vehicle .as used b the
returnin# national outside of The 8ahamas such proof bein# one or
more of the follo.in# items A
=i> a bill of saleB
=ii> certificate of titleB
=iii> forei#n re#istration documentB
=iv> police certificate of re#istrationB
=v> an insurance polic coverin# the vehicleB
=vi> a document confirmin# the prior export of the vehicle from
The 8ahamasB
=d> the vehicle .as ac@uired b inheritance and the importer provides
documentar proof acceptable to the )*T Commissioner and the
Comptroller of Customs that the vehicle .as o.ned b the
deceased abroad/ such proof bein# A
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=i> one or more documents listed in sub1sub1para#raphs =i> to
=vi> of sub1para#raph =c> to#ether .ith a death certificate of
the deceasedB
=ii> an authenticated document from the executor of the
deceasedB and
=e> the returnin# national enters into an a#reement in +orm 7o. 4 .ith
the )*T Commissioner and the Comptroller of Customs that A
=i> the vehicle .ill not be sold/ #ivena.aas a #ift/ exchan#ed/
or other.ise disposed of/ .ithin five ears of entr .ithout
pament of the applicable )*TB and
=ii> the returnin# national .ill notif the )*T Commissioner in
.ritin# .here/ .ithin five ears of the date that the vehicle
entered The 8ahamas/ the returnin# national A
=*> disposes of the vehicleB
=8> departs from The 8ahamas for a period of more than
six monthsB
=C> transfers the use of the vehicle .here he leaves The
8ahamas temporaril for a period of up to six months.
=&> *n exemption from )*T under this re#ulation in respect of a vehicle does
not extend to the liabilit of the returnin# national for an dut or other
tax/ other than )*T/ that ma appl to the imported vehicle.
=8> * returnin# national .ho applies for an exemption pursuant to para#raph
=1> must file the application in duplicate .ith the )*T Commissioner and
the Comptroller of Customs in +orm 7o. 2$.
=!> * returnin# national must not make/ b act or omission/ an false or
misleadin# or fraudulent statements in support of an application for
exemption.
1.. Time limit for entr( of e&empt import# of retrnin* national#.
=1> *n exemption under re#ulation 18 is limited to such #oods of a returnin#
national that enter The 8ahamas for Customs purposes .ithin three
months before or after the returnin# national arrives in The 8ahamas.
=2> +or the purposes of para#raph =1>/ the )*T Commissioner ma #rant an
extension beond the three1month period .here A
=a> application for an extension in +orm 7o. " is filed .ith the )*T
Commissioner b the returnin# national .ithin the three1month
period after his arrival in The 8ahamasB and
=b> the returnin# national sho.s #ood cause in the application .h an
extension ou#ht to be #ranted.
0a#e 1 23
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2/. 0iolation of "on!ition# for e&emption '( retrnin* national#.
=1> * returnin# national A
=a> .ho throu#h fraud or misrepresentation obtains an exemption under
re#ulation 18B or
=b> .ho subse@uent to obtainin# an exemption violates a condition to
.hich the exemption .as sub:ect or .hich .as contained in an
a#reement referred to in para#raph =%>=e> of re#ulation 18/
is liable A
=i> in respect of #oods other than a motor vehicle/ for )*T e@ual
to the amount of )*T that .ould have been char#eable at the
time of the entr of the #oods into The 8ahamas had the
exemption not applied to#ether .ith an applicable interest
and finesB
=ii> in respect of a vehicle A
=*> for )*T e@ual to the amount of )*T that .ould have
been char#eable at the time of the entr of the
imported vehicle into The 8ahamas had the exemption
not applied to#ether .ith an applicable interest and
finesB
=8> seiDure of the vehicle b the )*T CommissionerB and
=C> sale at public auction of the vehicle b the )*T
Commissioner .here the amount due is not paid
.ithin t.o months after the date of seiDure and
application of the net proceeds to pament of the
outstandin# )*T/ interest and fines.
=2> +or the purposes of re#ulation 18=">=b>=c>/ a person is deemed to reside
outside The 8ahamas .here the person leaves The 8ahamas for an
uninterrupted period of six months.
=3> 7ot.ithstandin# para#raphs =1> and =2>/ the +inancial -ecretar ma b
notice in .ritin# in +orm 7o. % to the Central 'evenue *#enc/ specifin#
the special circumstances that appl/ re@uest the *#enc to treat for
purposes of re#ulation 18 a returnin# national .ho leaves The 8ahamas
for an uninterrupted period of more than six months as continuin# to
reside in The 8ahamas.
21. Certifi"ate#8 noti"e# an! !e"laration#.
=1> * certificate of re#istration b the )*T Commissioner pursuant to section
22=3> of the *ct must be in issued in +orm 7o. 18.
=2> * notice of chan#e of circumstances b a re#istrant pursuant to section
2"=1> of the *ct must be filed in +orm 7o. 1!.
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=3> * notice of assessment b the )*T Commissioner under the *ct must be
issued in +orm 7o. 22.
=4> 0ursuant to section "!=1> and ="> of the *ct/ a notice b the )*T
Commissioner re@uirin# A
=a> a person to furnish information to/ or attend/ the Commissioner or a
)*T officer must be issued in +orm 7o. 23B
=b> a person to produce a record or computer must be issued in +orm
7o. 24B
=c> a person to provide access to premises must be issued in +orm 7o.
2"B
=d> a bank or financial institution to A
=i> furnish details of a bankin# account or other assets/ must be
issued in +orm 7o. 2%B
=ii> furnish a cop of bank statements or statement of assets/
must be issued in +orm 7o. 2&B
=ii> permit the )*T Commissioner or a )*T officer to inspect
records/ must be issued in +orm 7o. 28B
=iv> to attend b an officer and #ive evidence before the
Commissioner/ must be issued in +orm 7o. 2!.
="> 0ursuant to section %!=1> of the *ct/ a notice re@uirin# a person to be the
a#ent of a person liable to pa tax must be issued in +orm 7o. 3$.
=%> * declaration b the )*T Commissioner declarin# a person to be the
representative of a taxable person pursuant to section &1=1> of the *ct
must be issued in +orm 7o. 31.
PART I0 TRAN3ACTI2N3 IN02L0IN7 A 39PPLY 2R
IMP2RT 21 722D3 2R 3ER0ICE3
22. Appli"ation of a portion of *oo!# or #ervi"e# to a !ifferent #e.
+or purposes of 0art ) of the *ct A
=a> sub:ect to para#raph =c>/ the application b a taxable person of a
portion/ amountin# to more than ten percent/ of #oods or services
ac@uired to a different use is char#eable as a taxable supplB
=b> the )*T Commissioner must determine/ .here a taxable person
applies a portion of #oods or services to a different use/ the portion
of #oods or services so converted to a different use b A
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=i> a##re#atin# .ithin a t.elve month period the applications to
a different use of such #oods or servicesB and
=ii> calculatin# in accordance .ith re#ulation 2" the value of the
portion of the #oods or services applied to a different useB
=c> the application to a different use b a taxable person of a portion of
#oods or services ac@uired is not char#eable as a taxable suppl
.here A
=i> the taxable person .as not entitled to claim an input tax
deduction for )*T imposed and paid on the ac@uisition of
such #oods or servicesB
=ii> the #oods .ere on hand on the date of cancellation of the
re#istration of such person but no claim .as made for input
tax deduction in respect of )*T imposed and paid at the time
the #oods .ere ac@uiredB or
=iii> the #oods or services are exempt #oods or exempt services.
23. 3ppl( of *oo!# or #ervi"e# to emplo(ee#.
=1> 0ursuant to re#ulation 22/ the provision b an emploer of #oods or
services ac@uired for use in a taxable activit carried on b such emploer
to an emploee for personal use is a taxable suppl except .here A
=a> the emploer .as not entitled to claim an input tax deduction for
)*T imposed and paid on the ac@uisition of such #oods or servicesB
=b> the #oods .ere provided to the emploee on the date of cancellation
of the re#istration of the emploer and the emploer had made no
claim for input tax deduction in respect of )*T imposed and paid at
the time the #oods .ere ac@uiredB or
=c> the emploer supplies an exempt #ood or exempt service to the
emploee.
=2> * suppl of #oods or services b an emploer to an emploee is/ except
.here para#raphs =a>/ =b> or =c> applies/ a taxable suppl for consideration
even .here the emploee does not pa/ or pas less than market value/ for
the #oods or services.
2%. Determination of vale of *oo!# or #ervi"e# applie! to a !ifferent
#e.
=1> The value of a suppl comprisin# the portion of #oods or services .hich
are applied b a taxable person to a different use is the lesser of A
=a> the percenta#e that the cost of the #oods or services .hich are
applied to the different use bears to the ori#inal cost of the entire
#oods or services ac@uired b the taxable personB or
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=b> the current fair market value of such #oods or services as evidenced
b documentar proof.
=2> *n application to a different use is treated as nil .here ten percent or less
of the value of #oods or services ac@uired b a taxable person is applied to
the different use.
=3> 0ara#raph =2> does not appl to a suppl of immovable propert.
2). Determination of vale of #ppl( '( a!van"e pa(ment of #pe"ifie!
*oo!# or #ervi"e#.
=1> 0ursuant to section 3%=12> of the *ct and sub:ect to para#raph =2> of this
re#ulation/ the value of a suppl of a phone card/ prepament on a cellular
phone/ or other specified #ood or service under a similar scheme of
advance pament/ is the stated value on such prepaid card as ma be used
to obtain the #ood or service.
=2> 0ara#raph =1> applies onl .here A
=a> a re#istrant .ho is a service provider or reseller supplies the
specified #ood or service to an unre#istered taxable person .ho is
also a resellerB
=b> the sale is at a discount from the stated value on the card .hich
stated value excludes )*TB and
=c> )*T on the suppl is accounted for separatel from the stated value.
=3> The value of a suppl pursuant to section 34=2> of the *ct is/ .here the
supplier of a prepaid card does not account for )*T separatel from the
stated value on such card/ the price of such prepaid card reduced b an
amount e@ual to the )*T fraction and multiplied b that price so that/ b
.a of example A
=a> in a case .here the tax rate on the suppl is ten percentB
=b> .here the prepaid cardFs stated value is one hundred and ten
dollarsB and
=c> .here the card is sold b a re#istrant service provider or reseller to
a reseller .ho is an unre#istered taxable person for ninet t.o
dollars/
the value of the suppl b the re#istrant service provider or reseller is one
hundred dollars/ bein# one hundred ten dollars reduced b the )*T
fraction or =1$K11$ x 11$>.
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2+. 0ale of a #ppl( of "apital *oo!# on "an"ellation of re*i#tration2
The value of capital #oods deemed to be a taxable suppl on a cancellation of
re#istration pursuant to section 3%=13>=b> of the *ct is determined in accordance
.ith the ou"$h Schedule.
2,. Cla##ifi"ation of tran#a"tion a# a mi&e! #ppl( or a mi&e! import.
=1> * mixed suppl or a mixed import occurs .here a sin#le transaction
consists of A
=a> the suppl of t.o or more thin#s/ .hether #oods or services or
both/ .here the )*T treatment of each thin# .ould be different if
the .ere not combined in the sin#le transactionB or
=b> the importation of t.o or more thin#s/ .hether #oods or services or
both/ .here the )*T treatment of each thin# .ould be different if
the .ere not combined in the sin#le transaction.
=2> The )*T Commissioner ma classif a transaction involvin# the suppl or
importation of t.o or more thin#s/ .hether #oods or services or both/
.here each thin# on its o.n .ould be sub:ect to a different )*T
treatment/ as A
=a> a mixed suppl or a mixed import constitutin# a sin#le transactionB
or
=b> t.o or more separate supplies or imports/ .here each thin# supplied
or imported is sub:ect to its o.n )*T treatment.
=3> +or the purposes of 0art ) and 0art )I of the *ct/ the )*T Commissioner
must/ in determinin# .hether a transaction is a mixed suppl or mixed
import constitutin# a sin#le transaction/ consider .hetherA
=a> one thin# bein# supplied or imported is merel a subsidiar part
that is ancillar or incidental to another thin# bein# supplied or
imported/ .hich latter thin# is the dominant part of the transactionB
and
=b> the subsidiar part is merel a means of better en:oin# the
dominant part or is a thin# necessaril supplied as an inte#ral part
of the dominant part.
=4> The )*T Commissioner must/ .here the Commissioner determines that a
transaction satisfies the criteria referred to in para#raphs =a> and =b> of
subsection =3> A
=a> classif the transaction as a sin#le transaction/ bein# a mixed suppl
or a mixed importB and
=b> treat each subsidiar part of the transaction as part of the dominant
part and sub:ect it to the same tax treatment as the dominant part.
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="> The )*T Commissioner must/ .here the Commissioner classifies a
transaction as t.o or more separate supplies or imports/ determine the
value of each separate suppl or import b A
=a> apportionin# the consideration for the transaction bet.een each
separate suppl or import so as to provide a true reflection of the
value to the recipient of each such suppl or importB and
=b> #ive such .ei#ht as the Commissioner deems appropriate in the
circumstances to the manner in .hich the supplier and the recipient
a#reed to apportion the consideration.
2-. :rokera*e #ervi"e#.
8rokera#e services rendered b a domestic supplier that are incidental to the
import of #oods are/ in accordance .ith section 3!=1> of the *ct/ part of the
import of #oods.
2.. Pla"e of #ppl( of #ervi"e# ren!ere! '( over#ea# portion of a
'#ine##.
=1> 7ot.ithstandin# section 32=3> of the *ct/ services rendered b an
overseas portion of a business to the portion of the business carried on in
The 8ahamas A
=a> is treated as services imported into The 8ahamas b the portion of
the business carried on in The 8ahamasB and
=b> is char#eable to )*T in accordance .ith section 44 of the *ct.
=2> -ub:ect to these 'e#ulations/ para#raph =1> applies to all services rendered
and/ for the avoidance of doubt/ includes the stora#e b an overseas
portion of a business of computer data of the business carried on in The
8ahamas.
3/. Di#"ont "opon#.
=1> In this re#ulation a discount coupon is a coupon that entitles the holder to
a discount on the price of specific #oods or services/ .hether such
entitlement is expressed as a A
=a> face value amount on or associated .ith the couponB
=b> percenta#e of the priceB or
=c> Ht.o1for1oneI or similar offer/ or in an other .a.
=2> The issuance of a discount coupon/ .hether in an advertisement or
other.ise/ is not a suppl.
=3> The consideration for a suppl of #oods or services/ .here a discount
coupon is used in relation to the suppl/ does not include the A
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=a> monetar value/ if an/ stated on the couponB or
=b> amount of the discount #ranted because of the acceptance of the
coupon.
PART 0 INP9T TA4 DED9CTI2N3 AND 0AT
D2C9MENT3
31. 3ale an! inpt ta& !e!"tion '( a re*i#trant !ealer of #e"on!;$an!
ve$i"le#.
=1> The tax period in .hich an input tax deduction ma be claimed/ pursuant
to section 4!=2>=f> of the *ct/ b a re#istrant dealer in respect of the sale
of a second1hand vehicle b such dealer is the tax period in .hich the
dealer sells the second1hand vehicle.
=2> * re#istrant dealer .ho claims/ or intends to claim/ an input tax deduction
in respect of the sale of a second1hand vehicle must A
=a> #ive to the person from .hom the vehicle is ac@uired a purchase
receipt in +orm 7o. 8 ackno.led#in# the purchase of the vehicleB
and
=b> maintain in +orm 7o. ! a re#ister or stock book for each vehicle
purchased.
=3> * purchase receipt issued b a re#istrant dealer under para#raph =2> must
contain A
=a> an identifin# number for the purchaseB
=b> a description of the vehicleB
=c> the date of the ac@uisition b the dealerB
=d> the name and address of the person sellin# the vehicle to the dealerB
=e> the price paid b the dealer for the vehicleB and
=f> the number of the invoice/ if an/ #iven b the seller to the dealer.
=4> * re#istrant dealer must enter into the re#ister or stock book of the dealer/
as soon as practicable after a purchase is made/ all of the information
re@uired to be listed on the purchase receipt and/ in addition L
=a> #ive each vehicle to be sold a separate identification numberB
=b> .here a vehicle .as purchased to#ether .ith a second vehicle or
other items for a sin#le price and such items .ill be sold separatel
A
=i> allocate the purchase price across the items in accordance
.ith their market value .hen purchasedB and
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=ii> ensure that the full amount paid to the seller has been listed
a#ainst the items purchased.
="> * re#istrant dealer must/ .here the dealer sells a second1hand vehicle/
enter in the re#ister or stock book/ and crossGreference to the entr for the
purchase of the vehicle sold the A
=a> date of saleB
=b> identifin# number or numbers #iven to the vehicle under this
re#ulationB
=c> number of the )*T invoice #iven for the saleB and
=d> price of the sale.
=%> -ub:ect to para#raph =&>/ an input tax deduction is not allo.ed under this
0art to a re#istrant dealer .ho contravenes or fails to compl .ith a
provision of this re#ulation.
=&> +or purposes of section 4! of the *ct/ the )*T Commissioner ma/
not.ithstandin# a re#istrant dealer is in contravention of or non1
compliance .ith a provision of this re#ulation/ allo. the dealer to claim
input tax deduction .here the Commissioner is satisfied that the dealerFs
records are sufficient to support an entitlement to a claim.
=8> * re#istrant dealer/ .here the dealer sells a secondGhand vehicle that .as
ac@uired as a tradeGin on the purchase of a ne. vehicle/ must ensure that
there is e@ualit in the values of the A
=a> price the dealer used to calculate the input tax deduction allo.ed
under section 4!=2>=f> of the *ct and this re#ulation for the
ac@uisition of the tradeGin carB and
=b> amount the dealer treated as nonGmonetar consideration in
.orkin# out the price of the ne. vehicle for the purposes of
determinin# the )*T paable on the suppl of that vehicle.
=!> +or the purposes of .orkin# out the amounts referred to in sub1para#raphs
=a> and =b> of para#raph =8>/ the re#istrant dealer must use the true market
value of the tradeGin vehicle or the tradeGin value stated in the transaction
documents.
32. Apportionment 6$ere 'ot$ ta&a'le an! e&empt #pplie# are ma!e.
=1> -ub:ect to para#raphs =3> and =4>/ input tax deduction is/ .here a taxable
person ac@uires or makes a suppl or importation that is used for the
makin# of both taxable and exempt supplies/ calculated accordin# to the
formula EA 4 BC)E .here A
0a#e 1 31
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=a> A is the total amount of input tax paable in respect of supplies and
imports received durin# the period less the sum of the input tax
attributable to supplies or imports A
=i> ac@uired or made .hich are directl allocable to the makin#
of taxable or exempt suppliesB
=ii> in respect of .hich deduction is disallo.ed under the *ct or
these 'e#ulationsB
=b> B is the total amount of taxable supplies made b the taxable person
durin# the periodB and
=c> ) is the total amount of all supplies made b the taxable person
durin# the period.
=2> * taxable person ma/ .here the fraction 'BC)' referred to in subsection
=1> is more than $.!$/ deduct the total amount of input tax on the supplies
or imports ac@uired or made durin# the tax period.
=3> 0ara#raphs =1> and =2> do not appl to a financial institution makin# both
taxable and exempt supplies for a tax period.
=4> The )*T Commissioner ma determine the amount of input tax allo.ed
for a tax period on such basis other than referred to in para#raphs =1> and
=2> as the Commissioner considers reasonable in a particular case.

33. 1inan"ial in#tittion#.
=1> * re#istrant .hich is a licensed financial service provider/ and makes both
taxable and exempt supplies/ ma claim input tax deduction onl for input
tax on purchases and imports used in makin# taxable supplies.
=2> * bank or other financial institution can claim an input tax deduction on
domestic purchases and imports onl to the extent that such purchases or
imports are directl attributable to and used .holl for the makin# of
taxable supplies.
=3> * re#istrant renderin# financial services .hich derives more than ninet
per cent of its total supplies in a tax period from taxable supplies ma
appl the de &!n!&!# rule and deduct the entire input tax allo.able on
taxable purchases and taxable imports for the period.
=4> The )*T Commissioner ma appl the de &!n!&!# rule referred to in
para#raph =3> to a business that renders financial services onl ancillar to
its business of sellin# taxable #oods or services.
="> * supplier of financial services must/ .hen calculatin# the value of
taxable and total supplies A
=a> use #ross fi#ures for supplies other than financial intermediation
servicesB and
0a#e 1 32
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=b> use net interest amounts =interest income less interest expense> for
financial intermediation services.
=%> The )*T Commissioner ma limit input tax deductions allo.ed under this
re#ulation .here it is/ in the opinion of the Commissioner/ necessar to
properl reflect transactions involvin# related parties.
3%. 0AT invoi"e8 0AT #ale# re"eipt8 ta& "re!it note an! ta& !e'it note.
=1> * person must/ .here a )*T document is re@uired for the purposes of the
*ct or these 'e#ulations/ ensure that such document is in the form and
contains the information specified in A
=a> +orm 7o. 1$/ for a )*T invoiceB
=b> +orm 7o. 11/ for a )*T sales receiptB
=c> +orm 7o. 12/ for a tax credit noteB and
=d> +orm 7o. 13/ for a tax debit note.
=2> * )*T invoice is invalid .here an of the specified information re@uired
to be stated on the )*T invoice is missin# and the re#istrant recipient of
the suppl is not entitled to claim an input tax deduction in relation to the
suppl unless and until the supplier issues a )*T invoice containin# the
specified information.
=3> 7ot.ithstandin# para#raph =2>/ .here the re#istrant recipient of a suppl
is entitled to claim an input tax deduction on )*T paid on the ac@uisition
of the thin# supplied but the amount of )*T stated on the )*T invoice
issued b the supplier is less than the )*T actuall char#eable on the
suppl A
=a> the )*T invoice is not invalid merel because it understates the
amount of )*T char#eable on the supplB and
=b> for the purposes of calculatin# the amount of an input tax
deduction that the recipient is entitled to claim under the *ct/ the
input tax in relation to the ac@uisition is treated as bein# e@ual to
the amount stated on the )*T invoice unless and until the supplier
issues a )*T invoice containin# the amount of )*T actuall
char#eable on the suppl.
=4> * re#istrant recipient of a suppl ma/ in the tax period in .hich the
ac@uisition .as made/ claim the correct or an additional amount of input
tax deduction in an case .here A
=a> the supplier purported to issue a )*T invoice but the document
issued is not a valid )*T invoice or the amount of )*T stated on
the invoice is less than the )*T actuall char#eable on the supplB
0a#e 1 33
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=b> the recipient re@uested the supplier/ .ithin sixt das after the date
of the suppl/ to issue a correct )*T invoiceB and
=c> the supplier provided a correct )*T invoice/ .hether before or after
the expiration of the sixt da period.
="> The input tax in relation to the ac@uisition of a suppl/ .here the )*T
invoice issued b the supplier overstates the )*T char#eable on the
suppl/ is A
=a> not the amount stated on the invoiceB and
=b> determined b reference to section % of the *ct.
=%> +or purposes of section 4! of the *ct/ this re#ulation applies .here
information re@uired to be stated on a tax credit note or tax debit note is
missin#/ or the amount of a )*T ad:ustment is understated/ as if the
references to A
=a> a )*T invoice .ere references to a tax debit note or tax credit noteB
and
=b> a claim for input tax deduction b the recipient of a suppl .ere
references to a claim for input tax deduction b the supplier or
recipient/ as the case ma be/ because of a )*T ad:ustment event.
=&> -ection "2=&> of the *ct does not prevent a re#istrant from issuin# a
corrected )*T invoice/ clearl marked HCorrected InvoiceI as such in
bold tpeface/ .here A
=a> a document purportin# to be a )*T invoice .as previousl issued
b the re#istrantB and
=b> the document referred to in sub1para#raph =a> is not a valid )*T
invoice or/ had para#raph =3> not applied/ .ould not have been a
valid )*T invoice.
PART 0I E4CE33 CREDIT3 AND RE19ND3
3). Proof of e&"e## "re!it# an! i##an"e of refn!#.
=1> * person claimin# under section "4 of the *ct a refund of tax paid in
excess of the amount properl char#ed must maintain and make available
for inspection b the )*T Commissioner on re@uest documentar proof in
support of the claim in the form ofA
=a> )*T invoices/ )*T sales receipts/ tax credit notes/ and tax debit
notes issued in the transactions #ivin# rise to the claimB and
=b> records that explain the essential features of the transactions and
ho. the relate to the excess amount claimed.
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=2> *n refund paable under 0art )II of the *ct is/ .here a re#istrant has
made no taxable supplies in a tax period/ nor in an previous tax period/
sub:ect to such conditions as the )*T Commissioner thinks fit to impose/
includin# a dela in the issuance of the refund until the re#istrant starts
makin# taxable supplies in the ordinar course of the taxable activit
carried on b such re#istrant.
3+. Pro"e!re for "laim of refn!# '( e&empt per#on#.
=1> This re#ulation applies to exempt persons pursuant to sections 2/ 8 and "%
of the *ct and/ in this re#ulation A
Heli#ible staff members of a missionI means a diplomatic a#ent or
consular officer .ithin the meanin# of the )ienna ConventionB
Hinternational or#anisationI means an or#anisation .ithin the meanin# of
section 3=1> of the International 6r#anisations =Immunities and
0rivile#es> *ct =Ch. 14> and includes the person servin# as head in
The 8ahamas and other eli#ible representatives of such
or#anisationB
HmissionI means a diplomatic mission or consulate .ithin the meanin# of
the )ienna ConventionB
H)ienna ConventionI means A
=a> the )ienna Convention on Consular 'elations scheduled to
the Consular 'elations and Common.ealth 6fficers *ct =Ch.
1'>B
=b> the )ienna Convention on Diplomatic 0rivile#es and
Immunities scheduled to the Diplomatic 0rivile#es and
Immunities *ct =Ch. 19>B
=2> * diplomatic a#ent or consular officer or the head in The 8ahamas of an
international or#anisation ma appl/ on behalf of the mission or
or#anisation/ to the )*T Commissioner in +orm 7o. 14 for a refund of
)*T paid on the ac@uisition of @ualifin# #oods or services.
=3> 5oods or services .hich @ualif for a refund pursuant to subsection =2>
include A
=a> #oods and services imported or ac@uired for official receptions/
dinners/ or luncheons/ hosted at hotels and restaurantsB
=b> household furniture and e@uipment imported or ac@uired for official
use onl b the A
=i> mission and eli#ible staff members of the missionB
=ii> head and eli#ible representatives of an international
or#anisationB and
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=c> such other #oods or services as the ;inister ma b order approve.
=4> * mission or international or#anisation ma appl for a refund of tax
under para#raph =2> onl .here the mission or or#anisation A
=a> is re#istered under 0art I) of the *ctB and
=b> provides the )*T Commissioner .ith A
=i> a specimen of the si#nature of the head of the mission or
head of the international or#anisationB
=ii> a specimen of the si#nature of a diplomatic a#ent or consular
officer/ or an official of the or#anisation/ .ho is A
=*> dele#ated authorit to si#n )*T returns and the
application for refund and schedule of purchases in the
absence of the headB and
=8> approved b the Commissioner.
="> The )*T Commissioner ma re#ister a mission or an international
or#anisation under section 18 of the *ct/ .hether or not the mission or
or#anisation is a taxable person or carries on a taxable activit.
=%> *n application for refund in +orm 7o. 14 must be filed b the mission or
or#anisation .ith the )*T Commissioner on a monthl basis as if it .ere
a )*T return unless the Commissioner has #ranted the head of the mission
or or#anisation .ritten permission to file the application on a different
basis.
=&> *n application for refund in +orm 7o. 14 filed on behalf of a re#istered
mission or international or#anisation must be accompanied b A
=a> supportin# documentation establishin# the amount of )*T paid in
relation to the ac@uisition or import made b the person entitled to
the refund and the reason that the #oods or services @ualif under
para#raph =3>B
=b> an ori#inal valid )*T invoice or other evidence .hich/ to the
satisfaction of the Commissioner/ evidences A
=i> that a suppl to the mission or or#anisation .as a taxable
supplB
=ii> the amount of tax included in the price of the supplB
=iii> that the person claimin# to be entitled to the refund made the
ac@uisition and paid the consideration for the supplB
=c> customs entr documentation or other evidence in relation to a
taxable importation sho.in# the amount of tax paid to the
Comptroller of Customs and the identit of the person b .hom it
.as paidB and
=d> a schedule of purchases in +orm 7o. 1" .
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=8> * mission or international or#anisation must/ .here filin# an application
for refund A
=a> sub:ect to para#raph =%>/ cate#oriDe at the end of each tax period all
)*T invoices or other supportin# documentation accordin# to
claims made on behalf of A
=i> the mission or an individual eli#ible staff memberB and
=ii> the or#anisation or an individual eli#ible representativeB
=b> include on the )*T invoice or supportin# documentation the uni@ue
)*T identification number of the mission or or#anisation and/ in the
case of an individual claimant/ the personFs diplomatic
identification card numberB
=c> complete the schedule of purchases in +orm 7o. 1" usin# the
information on the )*T invoice or other supportin# documentationB
=d> total and attach the schedule of purchases to the )*T return to#ether
.ith the supportin# documentation attached in the same order as it
appears on the schedule of purchasesB and
=e> si#n in accordance .ith para#raph =4>=b> the application for refund
and the schedule of purchases.
=!> The )*T Commissioner must/ .here the Commissioner is satisfied that an
application for refund and schedule of purchases are correct/ .ithin three
calendar months of receipt of the application and schedule issue a refund
to the mission or international or#anisation b .a of che@ue.
=1$> * mission or or#anisation receivin# a che@ue pursuant to para#raph =!> is
responsible for distributin# the refunds to the claimants.
=11> The )*T Commissioner must/ .here the Commissioner is not satisfied
that an application for refund and schedule of purchases are correct A
=a> notif the head of the mission or international or#anisation in
.ritin# specifin# the reasons .h the Commissioner is not
satisfiedB and
=b> .ithin three calendar months of receipt of the application and
schedule issue a refund for such part of the claim/ if an/ that the
Commissioner is satisfied is correct.
PART 0II TA4;E4CL93I0E PRICIN7
3,. Ta&;e&"l#ive pri"in*.
=1> This re#ulation applies .here a re#istrant offers #oods for retail sale.
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=2> * re#istrant offerin# #oods for retail sale must sho. the price on the
#oods exclusive of )*T and/ .here )*T is char#ed on such #oods/ sho.
the amount of )*T char#ed in a )*T sales receipt or )*T invoice issued
to the purchaser.
=3> The )*T Commissioner ma approve methods of identification b a
re#istrant of taxable #oods A
=a> usin# colour codin# price tickets for taxable, Dero1rated/ special1
rated/ exempt and other suppliesB or
=b> b asteriskin# taxable supplies/
provided a clear explanation of the method used is displaed prominentl
at such places as are necessar to enable customers to identif/ before the
enter into a transaction/ .hether )*T has been included in the price of the
#oods.
PART 0III 211ENCE38 PENALTIE38 ADMINI3TRATI0E
1INE3 AND <ARNIN7 LETTER3
3-. 7eneral offen"e#.
=1> * person commits an offence .ho A
=a> not bein# a taxable person/ in contravention of subsection =4> of
section 4 of the *ct/ collects/ advertises/ or @uotes value added tax
in respect of a taxable suppl b such person to another personB
=b> .ilfull evades/ or attempts to evade/ the assessment/ pament/ or
collection of )*T pursuant to the *ct and these 'e#ulationsB
=c> .ilfull impedes/ or attempts to impede/ the )*T Commissioner or
a )*T officer in the administration of this *ct b A
=i> failin# to compl .ith a la.ful re@uest b the Commissioner
or officer made under 0art I4B
=ii> interferin# .ith/ or obstructin#/ the exercise b the
Commissioner or officer of a la.ful po.er under 0art I4B
=iii> in an manner .hatsoever contravenin# or failin# to compl
.ith a provision of the *ct and these 'e#ulatonsB or
=d> contravenes or fails to compl .ith a re@uirement of confidentialit
under section !2 of the *ct/
and is liable on conviction in the 'evenue Court to a fine not exceedin#
fift thousand dollars =M"$/$$$.$$> or to imprisonment for a term not
exceedin# t.o ears or to both such fine and imprisonment.
=2> * person .ho contravenes section 8! of the *ct commits an offence and is
liable on conviction in the 'evenue Court/ .here the tax properl paable
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b such person exceeds the tax paable on an assessment based on the
false or misleadin# statement/ to a fine e@ual to the sum of one thousand
dollars =M1$$$.$$> and/ in addition A
=a> the amount b .hich the tax paable b such person .ould be
reduced .hen assessed on the basis of the information provided in
the statementB and
=b> the amount b .hich an refund applied for b such person .ould
be increased .hen determined on the basis of the information
provided in the statement.
=3> * person .ho is declared an a#ent b the )*T Commissioner and .ho
contravenes section %!=2> of the *ct b failin# .ithin the prescribed time
to pa mone or deliver propert specified in a notice issued b the )*T
Commissioner commits an offence and is liable on conviction in the
'evenue Court to a fine not exceedin# ten thousand dollars =M1$/$$$.$$>
or to imprisonment for a term not exceedin# six months or to both such
fine and imprisonment.
=4> * person .ho/ in contravention of section !2 of the *ct/ fails to maintain
confidentialit commits an offence and is liable on conviction in the
'evenue Court to a fine not exceedin# ten thousand dollars =M1$/$$$.$$>
or to imprisonment for a term not exceedin# six months or to both such
fine and imprisonment.
="> * person .ho contravenes of fails to compl .ith an provision of the *ct
or these 'e#ulations for .hich no penalt is prescribed under this 0art
commits an offence and is liable on conviction in the 'evenue Court to a
fine not exceedin# ten thousand dollars =M1$/$$$.$$> or to imprisonment
for a term not exceedin# t.o ears or to both such fine and imprisonment.
3.. 2ffen"e# '( 0AT offi"er.
=1> * )*T officer .ho contravenes or fails to compl .ith section 13="> of
the *ct commits an offence and is liable on conviction in the 'evenue
Court to a fine not exceedin# one hundred thousand dollars =M1$$/$$$.$$>
or to imprisonment for a term not exceedin# t.o ears or to both such fine
and imprisonment.
=2> * )*T officer .ho contravenes or fails to compl .ith sections 13=4> or
13=%> of the *ct commits an offence and is liable on conviction in the
'evenue Court to a fine not exceedin# ten thousand dollars =M1$/$$$.$$>.
%/. 2ffen"e# '( 0AT re*i#trant.
=1> * re#istrant .ho/ in contravention of section ! of the *ct and re#ulation
3! A
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=a> fails to state the price of a #ood exclusive of )*TB
=b> fails to issue/ or to state separatel the amount of )*T char#ed on a
#ood in/ a )*T invoice or a )*T sales receiptB or
=c> fails to displa the prices of #oods or services supplied b such
re#istrant in accordance .ith the re#ulations or )*T 'ules/
commits and offence and is liable on conviction in the 'evenue Court to a
fine not exceedin# one hundred thousand dollars =M1$$/$$$.$$> or to
imprisonment for a term not exceedin# t.elve months or to both such fine
and imprisonment.
=2> * re#istrant .ho/ in contravention of section 24 of the *ct A
=a> fails to displa a valid certificate of re#istration at a location .here
he carries on a taxable activitB or
=b> fails to displa a valid certificate of re#istration in a conspicuous
place at the location .here he carries on a taxable activit/
fine not exceedin# fift thousand dollars =M"$/$$$.$$> or to imprisonment
for a term not exceedin# t.elve months or to both such fine and
imprisonment.
=3> * re#istrant .ho fails to compl .ith an provision of subsections =1> or
=3> of section 2" of the *ct commits an offence and is liable on conviction
in the 'evenue Court to a fine not exceedin# fift thousand dollars
=M"$/$$$.$$> or to imprisonment for a term not exceedin# t.elve months
or to both such fine and imprisonment.
=4> * re#istrant .ho in contravention of subsection =3> of section 4% fails to
file a )*T return in the prescribed form or .ithin the prescribed time/ or
to pa )*T due and paable/ for t.o or more consecutive or non1
consecutive tax periods/ commits an offence and is liable on conviction in
the 'evenue Court to a fine not exceedin# ten thousand dollars
=M1$/$$$.$$> or to imprisonment for a term not exceedin# six months or to
both such fine and imprisonment.
="> * promoter of public entertainment .ho contravenes or fails to compl
.ith section %1=3> of the *ct commits an offence and is liable on
conviction in the 'evenue Court to A
=a> a fine not exceedin# fift thousand dollars =M"$/$$$.$$>
or to imprisonment for a term not exceedin# t.o ears or to both
such fine and imprisonmentB and
=b> pa an additional penalt e@ual to fifteen percent of the value of the
tickets printed for the entertainment.
=%> * re#istrant .ho fails to #ive a securit pursuant to a notice in .ritin#
issued b the )*T Commissioner under section %1=1> of the *ct commits
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an offence and is liable on conviction in the 'evenue Court to a fine not
exceedin# fift thousand dollars =M"$/$$$.$$> or to imprisonment for a
term not exceedin# t.o ears or to both such fine and imprisonment.
=&> * re#istrant .ho contravenes or fails to compl .ith section "2 of the *ct
b A
=a> failin# to issue an ori#inal )*T invoice .ithin sixt calendar das
contrar to subsection =1>B
=b> issuin# more than one )*T invoice in respect of a taxable suppl
contrar to para#raph =a> of subsection =3>B
=c> failin# to compl .ith a re@uest .ithin the fourteen da period
contrar to para#raph =b> of subsection =3>B
=d> failin# to issue a )*T sales receipt in accordance .ith subsection
=">B or
=e> issuin# a )*T invoice or a )*T sales receipt contrar to subsection
=&>/
fine not exceedin# ten thousand dollars =M1$/$$$.$$> or to imprisonment
for a term not exceedin# six months or to both such fine and
imprisonment.
=8> * re#istrant .ho contravenes or fails to compl .ith section "4 of the *ct
b improperl filin# a claim for refund under subsection =2>=b>/ subsection
=">/ or subsection =!>/ of that section commits an offence and is liable on
conviction in the 'evenue Court to a fine not exceedin# ten thousand
dollars =M1$/$$$.$$> or to imprisonment for a term not exceedin# six
months or to both such fine and imprisonment.
%1. 2ffen"e# '( ta&a'le per#on.
=1> * taxable person .ho/ in contravention of section 18 of the *ct/ fails to
appl for re#istration A
=a> in accordance .ith subsection =1>B
=b> .ithin the time prescribed b para#raphs =a> or =b> or subsection
=2>B or
=c> bein# an auctioneer/ in accordance .ith para#raph =b> of subsection
=8>/
fine not exceedin# one hundred thousand dollars =M1$$/$$$> or to
and imprisonment.
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=2> * taxable person .ho fails to compl .ith an provision of subsections
=2> or =3> of section 2" of the *ct commits an offence and is liable on
conviction in the 'evenue Court to a fine not exceedin# one hundred
thousand dollars =1$$/$$$> or to imprisonment for a term not exceedin#
t.elve months or to both such fine and imprisonment.
=3> * hotel or other person responsible for the administration of condos that
are part of a pool or other collective rental arran#ement .ho/ in
contravention of section "=3> and section 18=2> of the *ct/ fails to re#ister
fine not exceedin# one hundred thousand dollars =M1$$/$$$> or to
and imprisonment.
=4> *n unre#istered taxable person .ho/ in contravention of section 23=2>=a>
and =c> of the *ct A
=a> collects tax or issues to an person a )*T invoice/ )*T sales
receipt/ tax credit note or tax debit noteB or
=b> fails to pa and account to the Central 'evenue *#enc for value
added tax char#eable on all taxable supplies and taxable
importations made b him .hile unre#istered/
fine not exceedin# t.o hundred fift thousand dollars =M2"$/$$$> or to
and imprisonment.
%2. 2ffen"e# '( importer.
=1> *n importer of a taxable importation of #oods .ho/ in contravention of
section 43 of the *ct A
=a> fails to submit an import declaration to the Comptroller of CustomsB
=b> fails to pa the )*T due on the importB or
=c> submits an import declaration that fails to compl .ith subsection
=3>/
and imprisonment.
=2> *n importer of a taxable importation of services .ho/ in contravention of
section 44 of the *ct A
=a> fails to submit an import declaration to the )*T CommissionerB
=b> fails to pa the )*T due on the import .ithin the time prescribedB
or
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=c> submits an import declaration that fails to compl .ith subsection
=3>/
and imprisonment.
%3. 2ffen"e# '( "ompanie#8 ai!er# an! a'ettor#.
=1> (ver person .ho/ at the time an offence under this 0art .as committed
b a compan A
=a> .as a director or other similar officer of the companB or
=b> acted or purported to act in the capacit of a director or other
similar officer/
also commits the offence and is liable on conviction in the 'evenue Court
to such penalt as ma be applicable for the offence.
=2> It is a defence for a person referred to in subsection =1> to prove that A
=a> the offence .as committed .ithout such personEs kno.led#e or
consentB and
=b> such person exercised such care/ dili#ence/ and skill to prevent the
commission of the offence b the compan as ou#ht to have been
exercised havin# re#ard to the nature of such personEs functions in
all the relevant circumstances.
=3> * person .ho aids or abets the commission b another of an offence
under this 0art also commits such offence and is liable on conviction in
the 'evenue Court to the same penalties as the person .hom he aided or
abetted in committin# such offence.
%%. A!mini#trative fine#.
=1> The Central 'evenue *#enc ma not impose under section 1" of the *ct
an administrative fine on a person .here in respect of the same act or
omission constitutin# the contravention or non1compliance to .hich such
fine relates such person has alread been convicted of an offence under
this 0art.
=2> The Central 'evenue *#enc must A
=a> .ithdra. a prosecution for an offence .hich/ after pament in full
of an administrative fine has been made .ithin the prescribed time/
is instituted in respect of the same act or omission constitutin# the
contravention or non1compliance to .hich the fine relatedB
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)*23( *DD(D T*4 '(532*TI67-/ 2$13
=b> refund the amount of an administrative fine that has been paid
.here/ after the lapse of the time prescribed for pament/ pament
of the fine has been made in part onl and a criminal prosecution is
instituted in respect of the same act or omission constitutin# the
contravention or non1compliance to .hich the fine relates.
=3> *n administrative fine imposed under section 1" of the *ct does not
become paable and the time period for pament specified in the order is
suspended until the prosecution is .ithdra.n in a case .here/ after
imposition of the fine and before pament in full has been made A
=a> a prosecution for an offence is instituted in respect of the same act
or omission constitutin# the contravention or non1compliance to
.hich the fine relatesB and
=b> the prosecution is instituted .hen the time period for pament
specified in the order has not et elapsed.
=4> 0ursuant to section 1" of the *ct/ a contravention or non1compliance
described in the second and third columns of the !"#$ Schedule is
classified as ver serious/ serious/ or minor as specified in the fourth
column of the !"#$ Schedule.
="> The Central 'evenue *#enc ma/ .here the *#enc imposes a fine on a
person/ publish in such manner as it deems appropriate a statement of the
contravention or non1compliance in respect of .hich the fine is imposed.
%). Pro"e!re for impo#ition of a!mini#trative fine#.
=1> The Central 'evenue *#enc must/ in determinin# the amount of a
variable fine to be imposed on a person .ho has committed a
contravention or non1compliance/ take into account the A
=a> de#ree of intention or ne#li#ence on the part of such personB
=b> harm done b the contravention or non1complianceB
=c> histor of such person havin# re#ard to the imposition of an prior
fine/ or conviction for an offence under this 0art/ .ithin the five1
ear period immediatel before the contravention or non1
complianceB
=d> .hether such person brou#ht the contravention or non1compliance
to the attention of the *#encB
=e> classification of the contravention or non1complianceB
=f> .hether or not the contravention or non1compliance .as
inadvertentB
=#> efforts/ if an/ made to rectif the contravention or non1compliance
and to prevent a recurrenceB
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=h> potential financial conse@uences to such person/ and to third parties
includin# customers and creditors of such person/ of imposin# a
fineB and
=i> the amount of the fines imposed b the *#enc in other same or
similar cases.
=2> The Central 'evenue *#enc ma/ .here the *#enc proposes to impose
an administrative fine on a person believed to have committed a ver
serious or serious contravention or non1compliance/ #ive to such person
prior to imposin# the fine a .ritten notice containin# the A
=a> name of such personB
=b> classification of the contravention or non1complianceB
=c> amount of the fine applicable .here fixed or that the *#enc
proposes to impose .here variableB
=d> ri#ht of such person .ithin fourteen das after the notice is served/
or .ithin such lon#er period as the *#enc ma specif in the
notice/ to pa the fine in full or to make representations to the
*#enc .ith respect to the contravention or non1complianceB
=e> manner in .hich the person ma make representations pursuant to
para#raph =d>B and
=f> .arnin# that such person is/ .here pament in full or
representations are not made in accordance .ith the notice/ be
deemed to have committed the contravention or non1compliance
and the *#enc ma issue an order imposin# the fine in respect of
it.
=3> * person .ho pas in full a fine in accordance .ith a .ritten notice #iven
pursuant to subsection =2> is deemed to have committed the contravention
or non1compliance and all proceedin#s in respect of such contravention or
non1compliance terminates upon such pament.
=4> The Central 'evenue *#enc must/ .here a person makes representations
in accordance .ith a .ritten notice #iven pursuant to subsection =2>/
decide on a balance of probabilities .hether such person committed the
contravention or non1compliance and .here the *#enc decides the
contravention or non1compliance A
=a> has been committed/ b order impose the applicable fixed
fine or the proposed or a lesser fine .here variableB or
=b> has not been committed/ impose no fine.
="> * person .ho does not pa a fine or make representations in accordance
.ith a .ritten notice #iven pursuant to subsection =2> is deemed to have
committed the contravention or non1compliance and the *#enc ma b
order impose the applicable fixed fine or the fine proposed in the notice.
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%+. A##e##ment an! "olle"tion of fine#.
-ub:ect to the *ct/ an administrative fine A
=a> ma be assessed and collected as if such fine .ere )*T due under
the *ct and these 'e#ulations and/ .here such fine relates to an
amount of )*T paable/ ma be assessed to#ether .ith the )*T to
.hich it relatesB and
=b> .hich is calculable b reference to the )*T paable for a tax period
must be assessed .ithin the same time limit .hich applies to the
assessment of the )*T to .hich the fine relates.
%,. <arnin* letter#.
=1> * .arnin# letter pursuant to section 1"=11> of the *ct must be issued b
the Central 'evenue *#enc in +orm 7o. 1%.
=2> * .arnin# letter pursuant to section 1"=13> of the *ct must be issued b
the Central 'evenue *#enc in +orm 7o. 1&.
%-. Limitation perio!# for pro#e"tion of offen"e#.
=1> The Central 'evenue *#enc ma not commence criminal proceedin#s
for an offence under this 0art A
=a> .here the contravention or non1compliance constitutin# such
offence is classified as minor/ later than six months after the
sub:ect1matter of the proceedin#s became kno.n to the *#encB or
=b> .here the contravention or non1compliance constitutin# such
offence is classified as serious or ver serious/ later than six ears
after the sub:ect1matter of the proceedin#s became kno.n to the
*#enc.
=2> * document appearin# to have been issued b the Central 'evenue
*#enc certifin# the da on .hich the sub:ect1matter of an proceedin#s
became kno.n to the *#enc is A
=a> admissible in evidence .ithout proof of the si#nature or official
character of the person appearin# to have si#ned such documentB
and
=b> in the absence of evidence to the contrar/ proof of the matter
asserted in such document.
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PART I4 MI3CELLANE293 PR20I3I2N3
%.. 2'=e"tion to !e"i#ion of t$e 0AT Commi##ioner.
* person ob:ectin# to an appealable decision of the )*T Commissioner pursuant
to section &8 of the *ct must lod#e the ob:ection in +orm 7o. 21.
)/. Tran#itional provi#ion#.
=1> * re#istrant .ho/ durin# the first month after the *ct comes into force/
fails to compl .ith a provision of re#ulation 32/ other than para#raph =">
A
=a> in relation to the non1compliance/ is not liable durin# such one1
month period to a fine pursuant to re#ulation 4&=4>=b>/ or to
prosecution in the 'evenue Court pursuant to re#ulation 4$=">B and
=b> is liable to a fine or prosecution as specified in sub1para#raph =a>
.here the non1compliance continues beond the one1month period.
=2> )alue added tax is paable on a taxable suppl or taxable import to the
extent that such suppl or import is made on or after the date the *ct
comes into force and/ for this purpose/ except as other.ise provided in
these 'e#ulations/ the rules relatin# to time of suppl under the *ct appl.
=3> * deposit made on a returnable container and paid to the person returnin#
the container after the comin# into force of the *ct is eli#ible for an input
tax deduction .here such pament is supported b such documentation as
the Commissioner ma re@uire.
FIRST S)/EDULE 0Reg<;a$!n 441
ADMINISTRATIVE FINES
VALUE ADDED TAX A)T, 2014
N! De%#r$5$!n !"
)!nraAen$!n !r N!n+
)!m5;$an#e
&r!A$%$!n
!"
A#
);a%%$"$#a$!n
0a#e 1 4&
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1 7ot bein# a taxable person/ or
bein# an unre#istered taxable
person/ collectin#/ advertisin#
or @uotin# )*T in respect of a
taxable suppl made to
another person.
8ein# an administrator of a
hotel pool or other pooled
accommodation/ failin# to
re#ister.
-ections 4=4>
-ection "=3>
)er -erious
)er -erious
2
8ein# a re#istrant/ failin#
in respect of a taxable suppl
to state the price exclusive of
value added tax.
-ection ! -erious
3 8ein# a re#istrant/ failin#
.hen char#in# )*T on a
taxable suppl to state the tax
separatel on a )*T invoice
or a )*T sales receipt.
-ection ! -erious
4 +ailure to appl for
re#istration.
-ection 18=1>=a>
=b> or =c>B -ection
18=2>=a> and =b>B
-ection 23=1>
)er -erious
" 8ein# an unre#istered taxable
person/ issuin# to a person a
)*T invoice/ )*T sales
receipt/ tax credit note or tax
debit note.
-ections 23=2>=a> )er -erious
% 8ein# a re#istrant/ failin# to
displa a valid certificate of
re#istration in a conspicuous
place at a location .here he
carries on a taxable activit.
-ection 24 ;inor
& 8ein# a re#istrant/ =a> failure
to notif the )*T
Commissioner of a chan#e in
circumstancesB or =b> failin#
to notif a chan#e in
circumstances in the manner
prescribed.
-ection 2"=1>B
-ection 2"=3>
)er -erious
;inor
0a#e 1 48
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8 +ailure b a taxable person to
notif the )*T Commissioner
of the sale or transfer of a
taxable activit as a #oin#
concern
-ection 2"=2> -erious
! +ailure to return to the )*T
Commissioner the certificate
of re#istration upon
cancellation.
-ection 2%=11> ;inor
1$ +ailure to =a> submit an
import declaration to the
Comptroller of CustomsB or
=b> pa the )*T due on the
import.
-ection 43=2> )er -erious
11 +ailure to submit an import
declaration =a> in the
prescribed formB =b> includin#
the information necessar to
calculate the )*T paable in
respect of the importB or =c> in
the manner prescribed or as
approved b the Comptroller
of Customs.
-ection 43=3>=a>
=b> or =c>B and
-ection 44=3>
-erious
-erious
12 +ailure to =a> submit an
import declaration to the )*T
CommissionerB and =b> to pa
the )*T due on the import
.ithin the prescribed time.
-ection 44=2>=a>
=b>
)er -erious
13 +ailure to =a> file a )*T
return in the prescribed time
and form or =b> pa )*T due
and paable pursuant to a
)*T return or notice of
assessment.
-ection 4%=1>=a>B
-ection 4%=1>=b>
)er -erious
)er -erious
14 8ein# an auctioneer =a>
failin# to add the output tax
char#eable on a taxable
suppl to the amount of a
successful bid or to the
purchase price in the case of a
-ection 48=1>B -erious
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sale out1of1handB or =b>
failin# to include the output
tax in the total cost or price
char#ed to the bidder or
purchaser.
-ection 48=2> -erious
1" -ubmittin# a claim for input
tax deduction to the )*T
Commissioner that is not
allo.able.
-ection 4!=3> ;inor
1% +ailure b a re#istrant to
make a post1suppl
ad:ustment as re@uired.
-ection "$=3>=4>
="> and =&>
-erious
1& +ailure b a re#istrant to issue
a )*T invoice .ithin the
time/ and in the form/
specifin# the particulars
prescribed.
-ection "2=1> )er -erious
18 Issuin# more than one )*T
invoice in respect of a taxable
suppl or failure to issue a
)*T invoice re@uested in
.ritin# .ithin the time
prescribed.
1! +ailure b a re#istrant to issue
a )*T sales receipt .ithin the
form and specifin# the
particulars prescribed.
-ection "2="> )er -erious
2$ 7ot bein# a re#istrant/ issuin#
a )*T invoice or a )*T sales
receiptB
8ein# a re#istrant/ issuin# a
)*T invoice or a )*T sales
receipt in a manner not
prescribed.
-ection "2=%>B
-ection "2=&>
)er -erious
-erious
21 8ein# a re#istrant supplier
issuin# a )*T invoice =a> as
principal .hen an invoice has
alread been issued b the
a#ent of such supplierB or
=b> to a re#istrant recipient
.hen the supplier has alread
-ection "2=8>
-ection "2=!>
-erious
-erious
0a#e 1 "$
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issued an invoice to the a#ent
of such recipient.
22 8ein# a re#istrant supplier
failure to issue =a> a tax credit
note in the form and
prescribedB or =b> a tax debit
note in the form and
prescribed.
-ection "3=1>B
-ection "3=2>
-erious
-erious
23 7ot bein# a re#istrant
supplier/ issuin# a tax credit
note or a tax debt note.
24 8ein# a re#istrant/ issuin#
more than one tax credt note
or tax debit note in respect of
a taxable suppl.
2" 8ein# a re#istrant/ failin# to
compl .ith para#raphs =a>
and =b> .hen filin# a claim
for refund.
2% +ailure b a person assessed
to pa the amount of tax
assessed b the date specified
in the notice of assessment.
-ection "&=!>=b> )er -erious
2& +ailure to compl .ith a
re@uest b the )*T
Commissioner made b
notice in .ritin#.
-ection "!=1>=a>
=b>=c > or =d>
)er -erious
28 +ailure to #ive the )*T
Commissoner or a )*T
officer reasonable assistance
or to ans.er @uestions.
-ection "!=2> )er -erious
2! 8ein# a bank or other
financial institution/ failure to
compl .ith a re@uest b the
)*T Commissioner made b
notice in .ritin#.
-ection "!="> )er -erious
3$ +ailure to provide reasonable -ection %$=3> )er -erious
0a#e 1 "1
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facilities or assistance to a
)*T officer in the exercise of
his po.ers.
31 +ailin# to provide securit in
the form/ amount and time
specified in the notice of
re@uest.
-ection %2=2> )er -erious
32 8ein# a promoter/ allo.in# a
public entertainment to take
place .ithout havin# =a> paid
the amount of securit
re@uested or =b> received the
approval in .ritin# of the
)*T Commissioner.
33 0reventin#/ interferin# .ith
or impedin# the )*T
Commissioner in the exercise
of his po.ers.
-ection %4=12> -erious
34 8ein# a fraudulent recipient
of a taxable suppl/ failin# to
pa the amount assessed in a
notice of assessment.
3" 8ein# a deemed a#ent/ failin#
.ithin the time prescribed to
pa mone or deliver
propert specified in the
notice to the )*T
Commissioner.
-ection %!=2> -erious
3% 8ein# a receiver/ failin# to
notif the )*T Commissioner
in .ritin# .ithin fourteen
calendar das after
appointment or after takin#
possession of an asset of a
person liable to )*T .ithin
The 8ahamas/ .hichever
event occurs first.
-ection &$=2> )er -erious
3& 8ein# a receiver/ failin# to set
aside out of the proceeds of
sale of an asset the amount
notified b/ or a#reed .ith/
-ection &$=4> )er -erious
0a#e 1 "2
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the )*T Commissioner.
38 8ein# a declared
representative of a taxable
person/ failin# to perofrm a
dut of the taxable person
under the *ct or the
re#ulations.
-ection &1=2> -erious
3! 8ein# a declared
representative of a taxable
person/ =a> alienatin#/
char#in#/ or disposin# of an
mone received or accrued in
respect of .hich )*T is
paableB or =b> disposin# of or
partin# .ith an fund or
mone belon#in# to the
taxable person .hose
representative he is/ and from
or out of .hich such tax
could le#all have been paid/
.hich is in his possession or
comes to him after the tax
becomes paable.
-ection &1=3>=a>
=b>
)er -erious
4$ 8ein# a director or similar
officer/ failin# to pa .ithin
the specified time the amount
paable in a notice of
assessment.
-ection &3=4> )er -erious
41 +ailin# to =a> keep reliable
accountin# records in the
(n#lish 2an#ua#e in relation
to taxable transactions or =b>
failin# to keep such records
for a period of seven ears.
-ection &%=1> and
=2>B and -ection
&&
)er -erious
42 8ein# a re#istrant/ failin# to
include in a )*T return/
notice or other document
prescribed or used for the
purposes of this *ct the
uni@ue value added tax
-ection 82=1> ;inor
0a#e 1 "3
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identification number issued
to him upon re#istration.
43 7ot bein# a taxable person/
failin# to include in an
application/notice/ declaration
or other document prescribed
or used for the purposes of
this *ct the )*T ID number
issued to him.
-ection 82=2> ;inor
44 Includin# a false taxpaer
identification number on a
document prescribed or used
for the purposes of the *ct.
-ection 82=3> )er -erious
pa the increased )*T
char#eable in relation to a
taxable suppl on a variation
in the )*T rate.
-ection 8&=1> -erious
4% 8ein# an unre#istered taxable
person/ collectin# from the
recipient of a suppl the
increased )*T char#eable in
relation to the suppl on a
variation in the )*T rate.
-ection 8&=4> -erious
4& ;akin# b an act or omission
a false or misleadin#
statement to the )*T
Commissioner or a )*T
officer.
-ection 8!=1> -erious
48 Impedin# tax administration
b failin# to compl .ith an
other provision of the *ct.
-ection !1 ;inor
N
!
De%#r$5$!n !"
)!nraAen$!n !r N!n+
)!m5;$an#e
&r!A$%$!n
!"
Reg<;a$!n%
);a%%$"$#a$!n
1 8ein# an administrator of a
pool/ failin# to re#ister under
section 18 of the *ct.
'e#. !=1> )er -erious
2 8ein# the o.ner of an
accomodation in a pool/
'e#. !=3> )er serious
0a#e 1 "4
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failin# to pa )*T on the
accomodation.
3 +ailin# to re#ister 'e#. 18=2>=a> )er -erious
file notice of chan#e of
circumstances in the
prescribed form
'e#. 1!=2> ;inor
" *idin# and abettin# an
offence
'e# 42=3> -erious
8
!
1$
11
12
13
14
SE)OND S)/EDULE 0Reg<;a$!n 121
VAT FORMS
In7e4
+orm 7o. 1 Declaration of Intent to Convert Commercial 'ental
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(stablishment to a D.ellin#
+orm 7o. 2 ;emorandum of 3nderstandin# 8et.een the Central
'evenue *#enc and (o)e"n&en$ *n$!$+ for (xchan#e
of Information
+orm 7o. 3 7otice in 9ritin# of Transfer of 8usiness as a 5oin#
Concern
+orm 7o. 4 'eturnin# 7ational *#reement
+orm 7o. " 'eturnin# 7ational *pplication for (xtension of Time
for (ntr of 5oods
+orm 7o. % 7otice in 9ritin# of -pecial Circumstances of
'eturnin# 7ational
+orm 7o. &
+orm7o. 8 'e#istrant Dealer 0urchase 'eceipt
+orm 7o. ! 'e#istrant Dealer -econd1Cand )ehicle 'e#isterK-tock
8ook
+orm 7o. 1$ )*T Invoice
+orm 7o. 11 )*T -ales 'eceipt
+orm 7o. 12 Tax Credit 7ote
+orm 7o. 13 Tax Debit 7ote
+orm 7o. 14 *pplication for 'efund b (xempt 0ersons
+orm 7o. 1" -chedule of 0urchases
+orm 7o. 1% Central 'evenue *#enc 9arnin# 2etter
+orm 7o. 1& Central 'evenue *#enc 9arnin# 2etter =Closure of 8usiness
0remises>
+orm 7o. 18 Certificate of 'e#istration
+orm 7o. 1! 7otice of Chan#e of Circumstances
+orm 7o. 2$ 'eturnin# 7ational *pplication for (xemption
+orm 7o. 21 6b:ection to Decision of )*T Commissioner
+orm 7o. 22 7otice of *ssessment
+orm 7o. 23 7otice to +urnish Information or *ttend the )*T
Commissioner
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+orm 7o. 24 7otice to 0roduce 'ecord or Computer
+orm 7o. 2" 7otice to 0rovide *ccess to 0remises
+orm 7o. 2% 7otice to +urnish Details of 8ank *ccount
+orm 7o. 2& 7otice to +urnish Cop of 8ank -tatements or -tatement of
*ssets
+orm 7o. 28 7otice to Inspect 8ankin# 'ecords
+orm 7o. 2! 7otice to *ttend and 5ive (vidence
+orm 7o. 3$ 7otice of *#enc
+orm 7o. 31 Declaration of 0erson to be 'epresentative
NB: MOF MUST PREPARE FORMS FOR INCLUSION IN DRAFT
REGULATIONS
0a#e 1 "&
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T/IRD S)/EDULE 0Reg<;a$!n 2,1
)AL)ULATION OF VALUE OF A DEEMED SU&&L( OF )A&ITAL GOODS
ON )AN)ELLATION OF REGISTRATION
&ART I ' )LASSIFI)ATION OF ASSETS
1. Cla##ifi"ation of real propert(.
=1> +or the purpose of determinin# the useful lives under 0art II .ith respect
to real propert used b a taxable person in his business/ real propert is
classified as follo.s A
=a> commercial real propert means hotels/ commercial rental
establishments and restaurantsB and
=b> industrial real propert includes buildin#s in .hich #oods are
manufactured or processed and buildin#s used for the purpose of
trade consistin# of the stora#e of #oods or materials .hichA
=i> are to be used in the manufacture of other #oods or materialsB
=ii> .ill be sub:ected in the course of trade to an processB and
=iv> have been manufactured/ produced or sub:ected in the course
of trade to an process but have not been delivered to a
purchaser.
=2> 'eal propert utiliDed for more than one purpose in a business is classified
as commercial or industrial dependin# on the dominant purpose for .hich
the propert is used.
2. Cla##ifi"ation of plant an! ma"$iner(.
=1> +or the purpose of determinin# the useful lives under 0art II .ith respect
to plant and machiner used b a taxable person in a business/ the plant
and machiner is classified as follo.s A
=a> five ear plant and machiner includes A
=i> aircraft and aircraft accessor e@uipmentB
=ii> bicclesB
=iii> motor cars/ lorries/ omnibuses/ vans/ :eeps/ tractors/ land
rovers/ traction and haulin# e@uipmentB
=iv> motor cclesB
=v> office appliances G accountin#/ addin# and calculatin#
machines/ cash re#isters/ duplicatin# and copin# machines/
tpe.riters/ computers and computer accessoriesB
0a#e 1 "8
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)*23( *DD(D T*4 '(532*TI67-/ 2$13 -chedule
=vi> trailers.
=b> seven ear plant and machiner includes A
=i> aerated bevera#e plant =electrical>B
=ii> baker machiner and plantB
=iii> block and brick manufacturin# machiner and plantB
=iv> ci#arette manufacturin# machinerB
=v> cinemato#raph e@uipment G pro:ectors/ fans/ public address
sstems and other electrical appliances and furniture used for
seatin#B
=vi> clothin# trade G #eneral machiner used in the clothin# trade
includin# se.in# machinesB
=vii> copra crushin# and refinin# plantB
=viii> cranesB
=ix> diesel en#ines and motorsB
=x> electrical liftsB
=xi> electrical undertakin#s includin# #eneratin# plantsB
=xii> en#ineerin# .orkshops G electrical e@uipment/ lathes and
millin# machines/ .eldin# plant/ tools and instrumentsB
=xiii> furniture .orkshops G electrical and other e@uipmentB
=xiv> furnitureB
=xv> ice manufacture and cold stora#e G electrical plant and
insulation/ refri#eration machiner/ compressors/ condensers/
tanks/ etc.B
=xvi> neon si#nsB
=xvii> photo#raphic e@uipmentB
=xviii>plant and machiner not specified as either five or nine ear
machiner or e@uipmentB
=xix> printin# tpeB
=xx> pumps G electric pumpsB
=xxi> radio e@uipment G amplifiers and receiversB
=xxii> refri#eration and deep freeDe cabinetsB
=xxiii>shippin# G canoes/ launches/ li#hters and sail boatsB
=xxiv> storesB and
=xxv> timber merchants G sa. millin# machiner and electrical
motorsB and
=c> nine ear plant and machiner includes A
=i> aerated bevera#e plant =steam>B
0a#e 1 "!
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-chedule )*23( *DD(D T*4 '(532*TI67-/ 2$13
=ii> clothin# trade G steam boilers/ en#ines and similar
machiner and plantB
=iii> electrical undertakin#s G mains and other e@uipment/ .ater
turbines and transformersB
=iv> en#ineerin# .orkshops G heav plantB
=v> #ara#es G #asoline and kerosene tanks and pumpsB
=vi> #as G #as holders and containers and other plantB
=vii> ice manufacture and cold stora#e G steam and #as en#inesB
=viii> oil tanks and pumpsB
=ix> printin# G plant and machinerB
=x> pumps G other than electric pumpsB
=xi> radio e@uipment G lines and speakersB
=xii> scalesB
=xiii> timber merchants G steam en#ines and boilersB and
=xiv> .ater.orks G appliances and apparatus used for stora#e/
purification/ conveance/ measurement or re#ulation of
.ater.
&ART II ' AMOUNT OF T/E )A&ITAL ALLO-AN)ES
Cal"lation of vale of "apital *oo!#.
=1> The value of capital #oods deemed supplied on the cancellation of
re#istration under the *ct and these 'e#ulations is calculated b deductin#
from the cost of constructin#/ ac@uirin# or improvin# the capital #oods
listed in 0art I the amount determined in accordance .ith the provisions of
this 0art.
=2> The deduction allo.able under para#raph =1> A
=a> be#ins in the ear in .hich the asset .as first brou#ht into use in
makin# taxable suppliesB and
=b> is the amount e@ual to the percenta#e of the assessed cost/ as
specified in this 0art/ of the asset.
=3> The deduction allo.able for industrial real propert is four per cent for the
ear the asset .as first brou#ht into use and in the next t.ent1four
succeedin# ears of assessment.
=4> The deduction allo.able for five ear plant and machiner is t.ent per
cent for the ear the asset .as first brou#ht into use and in the next four
succeedin# ears of assessment.
="> The deduction allo.able for commercial real propert is determined in
accordance .ith Table I A
0a#e 1 %$
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)*23( *DD(D T*4 '(532*TI67-/ 2$13 -chedule
TABLE 1
)OMMER)IAL REAL &RO&ERT(
*ssessment <ear 0ercenta#e of Cost
A%%e%%men (ear &er#enage !" )!%
1 4
2 G 33 3
=%> The deduction allo.able for seven ear plant and machiner is determined
in accordance .ith Table 2 A
TABLE 2
SEVEN (EAR &LANT AND MA)/INER(
A%%e%%men (ear &er#enage !" #!%
1 1"
2 1"
3 14
4 14
" 14
% 14
& 14
=&> The deduction allo.able for nine ear plant and machiner is determined
in accordance .ith Table 3 A
TABLE 3
NINE (EAR &LANT AND MA)/INER(
A%%e%%men (ear &er#enage !" )!%
1 12
0a#e 1 %1
DRAFT
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2 11
3 11
4 11
" 11
% 11
& 11
8 11
! 11
=&> The deduction under para#raph 1 is/ .here capital #oods have been used
for purposes other than in makin# taxable supplies/ computed as if
deductions had been allo.ed .ith respect to that asset for all of the ears
that the asset has been used in the business.
=8> The )*T Commissioner ma/ .here capital #oods are deemed supplied at
a time other than at the end of a ear of use/ apportion the deduction
allo.able in such manner as appears to the Commissioner to be
reasonable.
=!> 8 .a of example of a calculation under this 0art A
=i> .here machiner .as ac@uired for M1$$/$$$B
=ii> .here the machiner has a useful life of & earsB
=iii> .here the machiner has been used in a taxable activit for 3
earsB
the value of the machiner calculated in accordance .ith Table 2 A
Cost M1$$/$$$
Capital allo.ance =14N of cost after 3 rs> = 14/$$$>
)alue of capital #oods deemed supplied M 8%/$$$
is M8%/$$$ after the capital allo.ance or deduction of M14/$$$.$$.
0a#e 1 %2
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