(Draft) VAT Registration- Bahamas

8/13/2019 (Draft) VAT Registration- Bahamas

1/63

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 FinanceSir Cecil Wallace Whitfield Centre

West Bay StreetP.O. Box N3017Nassau Bahamas

Email:[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


2/63

Draft

Forc

onsu

ltation

VALUE ADDED TAX REGULATIONS, 2013

Arrangemen !" Se#$!n%

Se#$!n

&ART I &RELIMINAR( 4

1. Citation................................................................................................................42. Interpretation........................................................................................................43. Determination of fair market value and cash value..............................................84. Taxable activit....................................................................................................!". Criteria for approval as a charitable or#anisation...............................................1$%. Criteria for determinin# a finance lease..............................................................11&. Determination of related persons........................................................................118. Commercial rental establishment.......................................................................12!. Condos leased collectivel.................................................................................141$. 'eturnable container...........................................................................................1411. (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..............................................................181&. (xempt financial services...................................................................................1!

&ART III REGISTRATION 21

18. (xempt imports b nationals returnin# home. ...................................................211!. Time limit for entr of exempt imports of returnin# nationals. .........................232$. )iolation of conditions for exemption b returnin# nationals. ..........................2421. 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%

0a#e 1

DRAFT

Version: November 4, 2013


3/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

2". Determination of value of suppl b advance pament of specified #oods orservices...............................................................................................................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.....................2828. rokera#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 secondhand vehicles... . .3$32. *pportionment here both taxable and exempt supplies are made....................3133. +inancial institutions..........................................................................................3234. )*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..................................................343%. 0rocedure for claim of refunds b exempt persons............................................3"

&ART VII TAX+EX)LUSIVE &RI)ING 3

3&. Taxexclusive pricin#.........................................................................................3&

&ART VIII OFFEN)ES, &ENALTIES, ADMINISTRATIVE FINES AND

-ARNING LETTERS 3.38. 5eneral offences.................................................................................................383!. 6ffences b )*T officer.....................................................................................3!4$. 6ffences b )*T re#istrant................................................................................3!41. 6ffences b taxable person................................................................................4142. 6ffences b importer..........................................................................................4243. 6ffences b companies/ aiders and abettors.......................................................4344. *dministrative fines...........................................................................................434". 0rocedure for imposition of administrative fines................................................444%. *ssessment and collection of fines.....................................................................4%4&. 9arnin# letters...................................................................................................4%48. imitation 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 REGULATION 44 4

*D;I7I-T'*TI)( +I7(- 4&

0a#e 2

DRAFT



4/63

Draft

Forc

onsu

ltation

SE)OND S)/EDULE REGULATION 12 **

)*T +6';- ""

T/IRD S)/EDULE REGULATION 2 *.

C*C*TI67 6+ )*( 6+ * D((;(D -00< 6+ C*0IT* 566D- 67C*7C(*TI67 6+ '(5I-T'*TI67 "8

0a#e 3

DRAFT



5/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

VALUE ADDED TAX A)T

NO +++ OF 2013

VALUE ADDED TAX REGULATIONS, 2013

Te M$n$%er, $n eer#$%e !" e 5!6er% #!n"erre7 89 %e#$!n :3 !" e Va;


6/63

Draft

Forc

onsu

ltation

?76e;;$ng@ means a buildin#/ premises/ structure/ or other place/ or anpart thereof/ used or intended for use predominantl as a place of

residence or abode of a natural person to#ether ith anappurtenances belon#in# thereto or en:oed thereith/ excludin# acommercial rental establishmentB

?e7 a preprimar/ primar/ or secondar schoolB

=b> a technical colle#e/ communit colle#e/ or universitB

=c> an educational institution established for the promotion ofadult education/ vocational trainin#/ or technical educationB

=d> an institution established for the education or trainin# ofphsicall or mentall handicapped personsB

=f> an institution established for the trainin# of sports personsB

?E#$%e A#@ means the (xcise *ct =Ch. 293A>B

?e5!r #!


7/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=e> in respect of hich the particulars are included in the car#omanifest of the exportin# ship or aircraftB

=f> hich have not been/ nor ill be/ reimported into The

ahamas b the re#istrant supplierB?"a$r mar=e a; to five or more personsB=b> at a dail/ eekl/ monthl/ or other periodic char#eB

?$ne;;e#


8/63


9/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=2> 9ords and phrases not defined in para#raph =1> and used in these'e#ulations/ unless the context otherise re@uires/ have the samemeanin# 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 thesuppl from the recipient or an other person/ includin# a pamentholl or partl in mone or kindB

=b> made beteen 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 tothe extent the recipient ac@uires the #oods or services for a purposeunrelated to the makin# of taxable supplies and such purpose relatesto more than ten percent of the total taxable activit ac@uired b therecipient.

=2> +or the purposes of the *ct and these 'e#ulations/ the fair market value ofa 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 beteen persons ho arenot related persons/ ould #enerall fetch if supplied or imported insimilar circumstances at such date in The ahamasB

=b> here the fair market value cannot be determined under subpara#raph =a>/ the consideration in mone hich a similar suppl orsimilar import/ bein# a suppl or import freel offered and made

beteen persons ho are not related persons/ ould #enerall fetchif supplied or imported in similar circumstances at such date in TheahamasB

=c> here the fair market value cannot be determined under subpara#raphs =a> or =b>/ determined in accordance ith a methodapproved b the )*T Commissioner hich provides a sufficientlob:ective approximation of the consideration in mone hich could

be obtained for such suppl or import had the suppl or import beenfreel offered and made beteen persons ho are not related

personsB and

=d> determined in accordance ith the *ct at the time of the suppl orimport.

=3> +or purposes of para#raph =2> A

0a#e 8

DRAFT



10/63

Draft

Forc

onsu

ltation

=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 likecomponent materials hich enables them to perform the samefunctions and to be commerciall interchan#eableB and

=b> a similar suppl/ in relation to a suppl of #oods or services/ meansan other suppl of #oods or services hich/ in respect of thecharacteristics/ @ualit/ @uantit/ functional components/ materials/and reputation of the firstmentioned #oods or services/ is the sameas/ or closel or substantiall resembles/ that firstmentioned supplof #oods or services.

=4> +or the purposes of the *ct and these 'e#ulations/ the cash value inrelation 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/ anamount e@ual to the sum of A

=i> the consideration paid b the bank or institution for the #oodsor 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 theerection/ construction/ assembl/ or installation of the #oodsB

=b> here the seller or lessor is a dealer/ an amount e@ual to the sum ofA

=i> the consideration at hich the #oods are normall sold b thedealer 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 inpara#raph =1> is not a taxable activit.

=3> *n thin# done in connection ith the commencement or termination of ataxable activit is treated as carried out in the course or furtherance of that

taxable activit.

0a#e !

DRAFT



11/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=4> -ub:ect to these 'e#ulations/ an isolated suppl of propert used as adellin# made b a person independent of an other taxable activit is nottreated as a taxable activit.

="> * suppl of a condo that is part of a hotel complex/ includin# a condo thatis part of a rental pool/ is made in the course or furtherance of a taxableactivit re#ardless of the value of the taxable supplies associated ithsuch 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/ orother 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/ orother document constitutin# or #overnin# its activities is A

=i> re@uired to utilise an assets or income solel in furtheranceof its aims and ob:ectsB

=ii> prohibited from transferrin# an part of its assets or incomedirectl or indirectl so as to profit a person other than ba of the A

=*> provision of charitable assistanceB=> pament in #ood faith of reasonable remuneration to

an officer or emploee for services rendered to suchor#anisationB and

=iii> on its indin#up or li@uidation/ re@uired to #ive or transferto another societ/ association/ or other or#anisation/ havin#similar ob:ects its assets remainin# after the satisfaction of itsliabilities.

=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/ civicimprovement/ 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 oror#anisation/ or from a #roup or or#anisation that does not deal itheach other at armFs len#thB

=d> disburse annuall more than fift percent of contributions received

toards the attainment of activities referred to in para#raph =a>B

0a#e 1$

DRAFT



12/63

Draft

Forc

onsu

ltation

=e> not make its annual disbursement @uota referred to in para#raph =d>b the exchan#e of #ifts beteen other approved charities/ persons/

or#anisations or other le#al personsB=f> be in compliance ith an las in The ahamas #overnin#

charitiesB and

=#> be resident in The ahamas 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 seventfive percent of the expected

life of the #oodsB=b> hich provides for transfer of onership at the expiration of the

lease term or #rants the lessee an option to purchase the #oods for afixed or determinable price at the expiration of the lease termB

=c> here the estimated residual value of the #oods to the lessor at theexpiration of the lease term/ includin# the period of an option torene/ is less than tent percent of the fair market value of the#oods at the commencement of the lease termB or

=d> here the #oods are custommade for the lessee and/ at the

expiration of the lease term/ ill not be usable b anone other thanthe lessee.

,. Determination of relate! per#on#.

=1> +or the purposes of the *ct and these 'e#ulations/ a person * is related toa person / and vice versa/ here A

=a> * is a natural person and is a relative of *B

=b> * is a trust and is a person ho is or ma be a beneficiar inrespect of * or hose relative is or ma be a beneficiarB

=c> * is a partnership or compan limited b shares and is a memberof such partnership or compan and / to#ether ith other personsho are related persons under this section/ ons b a of sharesor other membership interests tentfive percent or more of theri#hts to income or capital of such partnership or companB

=d> * is a shareholder and 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 tentfive percent or more of the

votin# poer in B

0a#e 11

DRAFT



13/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=ii> ons tentfive percent or more of the ri#hts to dividendsor of the ri#hts to capitalB

=e> * is a compan and is a compan and a third person C/ either

alone or to#ether ith persons ho are under this section related toC A

=i> controls tentfive percent or more of the votin# poer in *and B

=ii> ons tentfive percent or more of the ri#hts to dividendsor of the ri#hts to capital in * and B

=f> * is a nonresident branch or home office of a compan operatin#in The ahamas and is a resident branch or home office of thesame compan in the ahamas.

=2> +or the purposes of subpara#raphs =c>/ =d> and =e> of para#raph =1>/ aperson ons/ on a pro rata basis/ shares or other membership interestshere such shares or interests are oned and controlled b such personindirectl throu#h one or more interposed persons.

=3> +or the purposes of this re#ulation A

=a> a relative 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 subsubpara#raph =ii>Band

=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 rentalestablishment 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 separatelidentifiable part of a business undertakin# carried on b an personho A

=i> leases or holds for lease in the course of such businessundertakin# the accommodation as residentialaccommodationB and

=ii> in respect of each occupant/ re#ularl or normall leases orholds for lease the accommodation as residentialaccommodation for continuous periods not exceedin# fort

five calendar dasB

0a#e 12

DRAFT



14/63

Draft

Forc

onsu

ltation

=c> residential accommodation in a condo/ timeshare/ or house/ac@uired b a nonresident under the International 0ersons

andholdin# *ct =Ch. 140> here the permit specifies that suchaccommodation ill be used for rental purposesB

=d> residential accommodation in a condo/ timeshare/ or house hichA

=i> is not part of a hotel or resort complexB

=ii> is ac@uired b a nonresident under the International 0ersonsandholdin# *ct =Ch. 140> hose permit specifies that suchaccommodation ill be used for rental purposesB

=e> residential accommodation in a condo/ house/ flat/ apartment/ or

room/ other than accommodation referred to in subpara#raphs =a>/=b>/ =c> or =d>/ hich is A

=i> in respect of each occupant of such condo/ house/ flatapartment/ or room/ re#ularl or sstematicall leased or heldfor lease as residential accommodation for continuous

periods not exceedin# fortfive 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>/ unlessdesi#nated b the ;inister pursuant to subpara#raph =f>/ does not includeaccommodation in a A

=a> boardin# establishment or hostel operated b A

=i> an emploer not for the profit of an person but/ solel orpredominantl/ for the benefit of A

=*> the emploees of such emploerB

=> a related person of such emploerB

=C> the dependants of a person referred to in =*> or =>B

=ii> a local #overnment council not for the profit of an personBor

=b> re#istered hospital/ maternit home/ nursin# home/ convalescenthome/ or clinic.

=3> -ub:ect to re#ulation 13/ the operation of a commercial rentalestablishment is a taxable activit comprisin# a taxable suppl of servicesand/ here the operation satisfies the re#istration threshold/ the oner ofsuch establishment becomes a taxable person re@uired to re#ister as suchunder the *ct.

0a#e 13

DRAFT



15/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=4> The conversion b the oner of a commercial rental establishment to adellin# A

=a> is a taxable supplB and

=b> ma in the discretion of the )*T Commissioner be treated as anexempt suppl here a taxable person onin# such establishmentsubmits to the Central 'evenue *#enc/ prior to the conversion/ aritten declaration in +orm 7o. 1 of the intent to convert suchestablishment to a dellin#.

="> * commercial rental establishment in respect of hich the oner fails tosubmit to the Central 'evenue *#enc/ prior to a conversion/ a rittendeclaration of the intent to convert such establishment to a dellin#/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 residentialaccommodations that are part of a pool or other collective rentala#reement is a taxable activit comprisin# a taxable suppl of servicesand/ here such activit satisfies the re#istration threshold/ theadministrator of such accommodations must re#ister as a taxable personunder section 18 of the *ct.

=2> The pament of )*T b an administrator pursuant to para#raph =1> on thesuppl of an accommodation in the pool relieves the oner of theaccommodation of the liabilit for )*T on the taxable supplies associatedith such accommodation.

=3> The oner of an accommodation under this re#ulation A

=a> is liable/ here the administrator fails to pa )*T on the suppl ofsuch accommodation/ for )*T on taxable supplies associated iththe 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/ forthe collective administration of condos or other residentialaccommodations formin# part of a pool.

1/. Retrna'le "ontainer.

=1> +or the purposes of the *ct/ a returnable container is a container that issupplied on pament of a deposit under an arran#ement hereb thecontainer/ here in a suitable condition/ is returnable for a refund or creditof the deposit.

=2> * returnable container pursuant to para#raph =1> includes A

0a#e 14

DRAFT



16/63

Draft

Forc

onsu

ltation

=a> heavdut 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 efficientmana#ement of taxes and taxpaer compliance/ enter into a ;emorandumof nderstandin# in +orm 7o. 2 ith other 5overnment entities to #overnin accordance ith section !2 of the *ct the tpe of information hichma be exchan#ed and the circumstances in hich such information ma

be exchan#ed.

=2> 7otithstandin# para#raph =1>/ the Central 'evenue *#enc ma ithoutenterin# into a ;emorandum of nderstandin# exchan#e informationith the Customs Department on a re#istrantEs uni@ue )*T identificationnumber.

12. 0AT orm#.

* reference made in these 'e#ulations to a specific numbered form is areference to that form as prescribed b and set out in the Second Schedule tothese 'e#ulations.

PART II APPLICATIN RATE TA4

13. 5ero rate! e&port#.

=1> *n exporter must/ in order to obtain ero ratin# for the export of #oodsand related services/ identif the #oods at the port of exit and present suchdocumentar proof as ma be re@uired b the Comptroller of Customs.

=2> The professional services specified in section ! of 0art II of the SecondSchedule to the *ct are erorated onl here the supplier providesdocumentar proof/ acceptable to the )*T Commissioner/ that the servicesare used or the benefit or advanta#e is obtained outside The ahamas.

1%. ppl( 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 tosections 2"=2>/ 28=2> and =3>/ 3$=8>/ 3%=12> of the *ct A

0a#e 1"

DRAFT



17/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=a> a #oin# concern is not a dormant or prospective business but anincomeproducin# activit capable of separate operation that is infact 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 thetransferred business is not profitable/ or is bein# transferred to ali@uidator/ receiver/ trustee in bankruptc/ or other person appointedupon the insolvenc of a re#istrantB

=d> the suppl is erorated onl here the transfer takes place on orafter the date the *ct comes into forceB

=e> a suppl of a #oin# concern is ero 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> eroratin# applies to a suppl of an existin# business that involvesonl a chan#e of le#al status or form of doin# business/ such asfrom a partnership to an incorporated companB

=#> it is not necessar for the transferee to operate the particularincomeproducin# 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 doesnot @ualif for eroratin# as the suppl of a #oin# concernB

=i> the transfer of machiner and a factor buildin# that have been usedto manufacture shippin# boxes @ualifies as a suppl of a #oin#concernB

=:> the suppl is not ero rated unless a notice in ritin# in +orm 7o. 3si#ned b both the transferor and transferee is filed ith the )*TCommissioner ithin tentone calendar das after the suppl

takes place and contains the details of the supplB=k> the tentone calendar da period referred to in subpara#raph =:>

ithin hich the notice must be filed is determined in accordanceith the provisions of section 31 of the *ctB

=l> the )*T Commissioner ma re@uire additional information from thetransferor or transferee/ or bothB or ma aive the re@uirement tovalue individual assets of nominal valueB

=m> here the transferor cancels its re#istration as a result of a erorated transfer of a #oin# concern A

=i> the transferor must compl ith section 2% of the *ctB

0a#e 1%

DRAFT



18/63

Draft

Forc

onsu

ltation

=ii> in accordance ith section 3$=%> of the *ct/ the #oods hichare not transferred as part of the #oin# concern constitute a

suppl of the #oods b the transferor at the value prescribedin re#ulation G and re#ulation GB and

=n> subpara#raph =m> does not appl to #oods and intellectual propertin respect of hich the transferor has not been alloed an input taxdeduction under the *ct and these 'e#ulations.

1). pe"ial rate! #pplie# '( $otel an! #imilar e#ta'li#$ment.

=1> * suppl b a hotel or similar establishment is char#eable to )*T at thespecial rate of ten percent of its value here the hotel or similar

establishment is re#istered and licensed b the otel icensin# *uthoritand 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 similarestablishment.

=2> * similar establishment pursuant to para#raph =1> includes a facilit A

=a> provided b a supplier for sleepin# accommodation for individualsfor overni#ht or shortterm stas of less than a monthB and

=b> comprisin# an apartment or room not located in a private homeleased for a month or more here the lessor provides utilities orfurnishin#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 unusualcircumstance does not b itself forfeit the special rated status of anaccommodation referred to in subpara#raph =a>B and

=b> a private home referred to in subpara#raph =b> is the residence ofthe lessor here the home is a sin#le famil dellin#.

=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> nondiscretionar 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 foodand bevera#esB

0a#e 1&

DRAFT



19/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=ii> rendered in the room or suite comprisin# the accommodationfor hich a separate char#e is imposed/ such as a char#e forinternet access.

="> * hotel or similar establishment hich bundles services to hich thespecial rate applies ith other services to hich the special rate does notappl A

=a> must apportion the services in relation to the fair market value ofeachB and

=b> is not re@uired to apportion the services here the value of theservices to hich the special rate does not appl does not exceedten 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/ notithstandin# that #uests or occupantssleep 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 dellin#B

=b> in relation to an established customer/ the total electricit suppliedto the residential dellin# on a monthl basis does not exceed kiloatts of electricit/ commencin# ith the billin#

period that be#ins on or after the date the *ct comes into forceB orthe avera#e monthl consumption ithin the precedin# calendarear did not exceed kiloatts of electricitB and

=c> in relation to a ne customer/ the supplier estimates that theavera#e annual consumption ill not exceed

kiloatts of electricitB or that the monthl consumption is likel tofall ithin =b>.

=2> * suppl of ater is exempt here A

=a> such suppl is made to a residential dellin#B

=b> in relation to an established customer/ the total ater supplied to theresidential dellin# on a @uarterl basis does not exceed tenthousand #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 18

DRAFT



20/63

Draft

Forc

onsu

ltation

=c> in relation to a ne customer/ the supplier estimates that theavera#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 Scheduleto the *ct and sub:ect to thisre#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/ orsimilar 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 financialintermediation services here such services are rendered for an implicitfee provided A

=a> a supplier ho makes a taxable suppl of #oods on credit does notinclude the finance char#es in the total amount paable b the buerin instalmentsB

=b> the supplier under subpara#raph =a> lists the finance char#esseparatel from the consideration for the #oodsB and

=c> the services are otherise in accordance ith the re@uirements ofthis re#ulation.

=3> * taxable person/ such as a credit department of a retail shop/ ma renderexempt financial intermediation services referred to in para#raph =2> evenhere 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/ evenhen rendered ithout an explicit or implicit fee or other similar char#e/and hether or not supplied b or to a financial service provider inconnection ith an exempt financial service/ here such service consists

of A

=a> le#al/ accountin#/ record packa#in# services/ and tax a#encservices/ 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!

DRAFT



21/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=a> the accountin# and record packa#in# services referred to in subpara#raph =a> are services hich ma be provided to a financialinstitution renderin# exempt financial services and include A

=i> services related to a financial clearin# sstem that ma bepart of the settlement processB

=ii> the postin# of financial transactions to or the maintenance ofthe accounts of the financial institutionFs customersB

=iii> the renderin# of services ancillar to the services under subsubpara#raphs =i> and =ii>B

=b> in relation to the factorin# services referred to in subpara#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 debtorsare taxable/ includin# sales accountin# services under afactorin# arran#ement and other services related to factorin#.

=%> +or the avoidance of doubt/ domestic financial services hich are notexempt form a char#e of )*T here a bank or financial services providerchar#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 travellerFsche@uesB

=c > che@ue cashin#B

=d> currenc exchan#e issuance/ sale or redemption of mone orders ortravellerFs 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 internationaltransport of #oods/ treated as a ero rated export of financial services.

=8> In this re#ulation A

Hche@ueincludes a postal order/ mone order/ che@ue/ or an other orderor authoriation/ hether in ritin#/ b electronic means/ orotherise/ to a financial institution to credit or debit an accountB

Hcurrencmeans a banknote or other currenc of an countr/ other thanhen used as a collectorFs piece/ investment article/ item ofnumismatic interest/ or otherise than as a medium of exchan#eB

Hdiscountin# cost means the amount a person is char#ed in the nature ofinterest hen obtainin# financin# usin# as securit its invoices or

0a#e 2$

DRAFT



22/63

Draft

Forc

onsu

ltation

receivables but excludes an service fee the lender or discounterchar#es to administer the finance facilit.

PART III RE7ITRATIN

1-. E&empt import# '( national# retrnin* $ome.

=1> * national ho is returnin# home for permanent residence ma appl foran exemption from a char#e of )*T under 0art III of the %h!"d Scheduletothe *ct here such national A

=a> has a valid passport establishin# his nationalit as a citien or

permanent resident of The ahamasB=b> has documents acceptable to the )*T Commissioner and the

Comptroller of Customs hich evidence such personEs A

=i> residential status outside The ahamas for at least theprevious ten earsB

=ii> intention to reestablish permanent residence in TheahamasB and

=c > satisfies the re@uirements of para#raph =%>.

=2> Documents acceptable to the )*T Commissioner and the Comptroller ofCustoms pursuant to subsubpara#raph =i> of subpara#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 ofCustoms pursuant to subsubpara#raph =ii> of subpara#raph =b> include

proof of A

=a> retirementB=b> onership of a dellin# home or land in The ahamasB or

=c> a planned investment in The ahamas.

=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 underei#hteen ears of a#e/ of the returnin# national.

0a#e 21

DRAFT



23/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

="> * returnin# national must/ in order to @ualif for an exemption underpara#raph =1> A

=a> be at least ei#hteen ears of a#eB

=b> have been a resident outside The ahamas continuousl for at leastten ears immediatel prior to his returnB

=c> be returnin# permanentl to The ahamasB

=d> retain onership and use of the #oods exempted from )*T for hispersonal useB

=e> not sell/ lend/ hire out or otherise dispose of an #oods #rantedexemption under this re#ulation ithin a period of five ears afterreestablishin# residence status in The ahamasB 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 Scheduleto the *ct is exempt from )*T provided A

=a> here the vehicle as purchased abroad/ it as purchased b thenational before returnin# to The ahamas and imported from thecountr here he resided immediatel before returnin# to TheahamasB

=b> here the vehicle as purchased in The ahamas/ it as purchasedb the national from a motor vehicle dealer licensed in The

ahamas ho sold it to the returnin# national directl from aCustoms bonded arehouseB

=c> the vehicle as ac@uired other than b inheritance and the importerprovides documentar proof acceptable to the )*T Commissionerand the Comptroller of Customs that the vehicle as used b thereturnin# national outside of The ahamas such proof bein# one ormore of the folloin# 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 fromThe ahamasB

=d> the vehicle as ac@uired b inheritance and the importer providesdocumentar proof acceptable to the )*T Commissioner and theComptroller of Customs that the vehicle as oned b thedeceased abroad/ such proof bein# A

0a#e 22

DRAFT



24/63

Draft

Forc

onsu

ltation

=i> one or more documents listed in subsubpara#raphs =i> to

=vi> of subpara#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 iththe )*T Commissioner and the Comptroller of Customs that A

=i> the vehicle ill not be sold/ #ivenaaas a #ift/ exchan#ed/or otherise 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 vehicleentered The ahamas/ the returnin# national A

=*> disposes of the vehicleB

=> departs from The ahamas for a period of more thansix monthsB

=C> transfers the use of the vehicle here he leaves Theahamas temporaril for a period of up to six months.

=&> *n exemption from )*T under this re#ulation in respect of a vehicle doesnot 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 andthe Comptroller of Customs in +orm 7o. 2$.

=!> * returnin# national must not make/ b act or omission/ an false ormisleadin# or fraudulent statements in support of an application forexemption.

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 ahamas for Customs purposes ithin threemonths before or after the returnin# national arrives in The ahamas.

=2> +or the purposes of para#raph =1>/ the )*T Commissioner ma #rant anextension beond the threemonth period here A

=a> application for an extension in +orm 7o. " is filed ith the )*TCommissioner b the returnin# national ithin the threemonth

period after his arrival in The ahamasB and

=b> the returnin# national shos #ood cause in the application h anextension ou#ht to be #ranted.

0a#e 23

DRAFT



25/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

2/. 0iolation of "on!ition# for e&emption '( retrnin* national#.

=1> * returnin# national A

=a> ho throu#h fraud or misrepresentation obtains an exemption underre#ulation 18B or

=b> ho subse@uent to obtainin# an exemption violates a condition tohich the exemption as sub:ect or hich as contained in ana#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@ualto the amount of )*T that ould have been char#eable at thetime of the entr of the #oods into The ahamas had theexemption not applied to#ether ith an applicable interestand finesB

=ii> in respect of a vehicle A

=*> for )*T e@ual to the amount of )*T that ould havebeen char#eable at the time of the entr of theimported vehicle into The ahamas had the exemptionnot applied to#ether ith an applicable interest andfinesB

=> seiure of the vehicle b the )*T CommissionerB and

=C> sale at public auction of the vehicle b the )*TCommissioner here the amount due is not paidithin to months after the date of seiure andapplication of the net proceeds to pament of theoutstandin# )*T/ interest and fines.

=2> +or the purposes of re#ulation 18=">=b>=c>/ a person is deemed to resideoutside The ahamas here the person leaves The ahamas for anuninterrupted period of six months.

=3> 7otithstandin# para#raphs =1> and =2>/ the +inancial -ecretar ma bnotice in ritin# in +orm 7o. % to the Central 'evenue *#enc/ specifin#

the special circumstances that appl/ re@uest the *#enc to treat forpurposes of re#ulation 18 a returnin# national ho leaves The ahamasfor an uninterrupted period of more than six months as continuin# toreside in The ahamas.

21. Certifi"ate#8 noti"e# an! !e"laration#.

=1> * certificate of re#istration b the )*T Commissioner pursuant to section22=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!.

0a#e 24

DRAFT



26/63

Draft

Forc

onsu

ltation

=3> * notice of assessment b the )*T Commissioner under the *ct must beissued in +orm 7o. 22.

=4> 0ursuant to section "!=1> and ="> of the *ct/ a notice b the )*TCommissioner 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 +orm7o. 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 beissued 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 inspectrecords/ must be issued in +orm 7o. 28B

=iv> to attend b an officer and #ive evidence before theCommissioner/ must be issued in +orm 7o. 2!.

="> 0ursuant to section %!=1> of the *ct/ a notice re@uirin# a person to be thea#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 therepresentative of a taxable person pursuant to section &1=1> of the *ctmust be issued in +orm 7o. 31.

PART I0 TRANACTIN IN0L0IN7 A 9PPLY RIMPRT 7D R ER0ICE

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 aportion/ amountin# to more than ten percent/ of #oods or servicesac@uired to a different use is char#eable as a taxable supplB

=b> the )*T Commissioner must determine/ here a taxable personapplies a portion of #oods or services to a different use/ the portionof #oods or services so converted to a different use b A

0a#e 2"

DRAFT



27/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=i> a##re#atin# ithin a telve month period the applications toa 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 supplhere A

=i> the taxable person as not entitled to claim an input taxdeduction for )*T imposed and paid on the ac@uisition ofsuch #oods or servicesB

=ii> the #oods ere on hand on the date of cancellation of there#istration of such person but no claim as made for input

tax deduction in respect of )*T imposed and paid at the timethe #oods ere ac@uiredB or

=iii> the #oods or services are exempt #oods or exempt services.

23. ppl( of *oo!# or #ervi"e# to emplo(ee#.

=1> 0ursuant to re#ulation 22/ the provision b an emploer of #oods orservices ac@uired for use in a taxable activit carried on b such emploerto 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 noclaim for input tax deduction in respect of )*T imposed and paid atthe time the #oods ere ac@uiredB or

=c> the emploer supplies an exempt #ood or exempt service to theemploee.

=2> * suppl of #oods or services b an emploer to an emploee is/ excepthere 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/ forthe #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 hichare 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 areapplied to the different use bears to the ori#inal cost of the entire#oods or services ac@uired b the taxable personB or

0a#e 2%

DRAFT



28/63

Draft

Forc

onsu

ltation

=b> the current fair market value of such #oods or services as evidencedb documentar proof.

=2> *n application to a different use is treated as nil here ten percent or lessof the value of #oods or services ac@uired b a taxable person is applied tothe 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 thisre#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 ofadvance pament/ is the stated value on such prepaid card as ma be usedto 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 thespecified #ood or service to an unre#istered taxable person ho isalso a resellerB

=b> the sale is at a discount from the stated value on the card hichstated 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 thesupplier of a prepaid card does not account for )*T separatel from thestated value on such card/ the price of such prepaid card reduced b anamount e@ual to the )*T fraction and multiplied b that price so that/ ba 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 tendollarsB and

=c> here the card is sold b a re#istrant service provider or reseller toa reseller ho is an unre#istered taxable person for ninet todollars/

the value of the suppl b the re#istrant service provider or reseller is onehundred dollars/ bein# one hundred ten dollars reduced b the )*Tfraction or =1$K11$ x 11$>.

0a#e 2&

DRAFT



29/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

2+. 0ale of a #ppl( of "apital *oo!# on "an"ellation of re*i#tration

The value of capital #oods deemed to be a taxable suppl on a cancellation ofre#istration pursuant to section 3%=13>=b> of the *ct is determined in accordance

ith theou"$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 transactionconsists of A

=a> the suppl of to or more thin#s/ hether #oods or services orboth/ here the )*T treatment of each thin# ould be different ifthe ere not combined in the sin#le transactionB or

=b> the importation of to or more thin#s/ hether #oods or services or

both/ here the )*T treatment of each thin# ould be different ifthe ere not combined in the sin#le transaction.

=2> The )*T Commissioner ma classif a transaction involvin# the suppl orimportation of to or more thin#s/ hether #oods or services or both/here each thin# on its on ould be sub:ect to a different )*Ttreatment/ as A

=a> a mixed suppl or a mixed import constitutin# a sin#le transactionBor

=b> to or more separate supplies or imports/ here each thin# supplied

or imported is sub:ect to its on )*T treatment.

=3> +or the purposes of 0art ) and 0art )I of the *ct/ the )*T Commissionermust/ in determinin# hether a transaction is a mixed suppl or mixedimport constitutin# a sin#le transaction/ consider hetherA

=a> one thin# bein# supplied or imported is merel a subsidiar partthat is ancillar or incidental to another thin# bein# supplied orimported/ hich latter thin# is the dominant part of the transactionBand

=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 partof the dominant part.

=4> The )*T Commissioner must/ here the Commissioner determines that atransaction satisfies the criteria referred to in para#raphs =a> and =b> ofsubsection =3> A

=a> classif the transaction as a sin#le transaction/ bein# a mixed supplor a mixed importB and

=b> treat each subsidiar part of the transaction as part of the dominantpart and sub:ect it to the same tax treatment as the dominant part.

0a#e 28

DRAFT



30/63


31/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=a> monetar value/ if an/ stated on the couponB or

=b> amount of the discount #ranted because of the acceptance of thecoupon.

PART 0 INP9T TA4 DED9CTIN AND 0ATDC9MENT

31. ale 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/ pursuantto section 4!=2>=f> of the *ct/ b a re#istrant dealer in respect of the sale

of a secondhand vehicle b such dealer is the tax period in hich thedealer sells the secondhand vehicle.

=2> * re#istrant dealer ho claims/ or intends to claim/ an input tax deductionin respect of the sale of a secondhand vehicle must A

=a> #ive to the person from hom the vehicle is ac@uired a purchasereceipt in +orm 7o. 8 acknoled#in# the purchase of the vehicleBand

=b> maintain in +orm 7o. ! a re#ister or stock book for each vehiclepurchased.

=3> * purchase receipt issued b a re#istrant dealer under para#raph =2> mustcontain 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 informationre@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 orother items for a sin#le price and such items ill be sold separatel

A

=i> allocate the purchase price across the items in accordanceith their market value hen purchasedB and

0a#e 3$

DRAFT



32/63

Draft

Forc

onsu

ltation

=ii> ensure that the full amount paid to the seller has been listeda#ainst the items purchased.

="> * re#istrant dealer must/ here the dealer sells a secondhand 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 thisre#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 alloed under this0art to a re#istrant dealer ho contravenes or fails to compl ith aprovision of this re#ulation.

=&> +or purposes of section 4! of the *ct/ the )*T Commissioner ma/notithstandin# a re#istrant dealer is in contravention of or noncompliance ith a provision of this re#ulation/ allo the dealer to claiminput tax deduction here the Commissioner is satisfied that the dealerFsrecords are sufficient to support an entitlement to a claim.

=8> * re#istrant dealer/ here the dealer sells a secondGhand vehicle that asac@uired as a tradeGin on the purchase of a ne vehicle/ must ensure thatthere is e@ualit in the values of the A

=a> price the dealer used to calculate the input tax deduction alloedunder section 4!=2>=f> of the *ct and this re#ulation for theac@uisition of the tradeGin carB and

=b> amount the dealer treated as nonGmonetar consideration inorkin# out the price of the ne vehicle for the purposes ofdeterminin# the )*T paable on the suppl of that vehicle.

=!> +or the purposes of orkin# out the amounts referred to in subpara#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 transactiondocuments.

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 taxableperson ac@uires or makes a suppl or importation that is used for themakin# of both taxable and exempt supplies/ calculated accordin# to theformula EA BC)E here A

0a#e 31

DRAFT



33/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=a> A is the total amount of input tax paable in respect of supplies andimports received durin# the period less the sum of the input taxattributable 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 disalloed under the *ct orthese 'e#ulationsB

=b> Bis the total amount of taxable supplies made b the taxable persondurin# the periodB and

=c> ) is the total amount of all supplies made b the taxable persondurin# 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 suppliesor imports ac@uired or made durin# the tax period.

=3> 0ara#raphs =1> and =2> do not appl to a financial institution makin# bothtaxable and exempt supplies for a tax period.

=4> The )*T Commissioner ma determine the amount of input tax alloedfor 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. inan"ial in#tittion#.

=1> * re#istrant hich is a licensed financial service provider/ and makes bothtaxable and exempt supplies/ ma claim input tax deduction onl for inputtax on purchases and imports used in makin# taxable supplies.

=2> * bank or other financial institution can claim an input tax deduction ondomestic purchases and imports onl to the extent that such purchases orimports are directl attributable to and used holl for the makin# oftaxable supplies.

=3> * re#istrant renderin# financial services hich derives more than ninetper cent of its total supplies in a tax period from taxable supplies maappl the de &!n!&!# rule and deduct the entire input tax alloable ontaxable purchases and taxable imports for the period.

=4> The )*T Commissioner ma appl the de &!n!&!# rule referred to inpara#raph =3> to a business that renders financial services onl ancillar toits business of sellin# taxable #oods or services.

="> * supplier of financial services must/ hen calculatin# the value oftaxable and total supplies A

=a> use #ross fi#ures for supplies other than financial intermediationservicesB and

0a#e 32

DRAFT



34/63

Draft

Forc

onsu

ltation

=b> use net interest amounts =interest income less interest expense> forfinancial intermediation services.

=%> The )*T Commissioner ma limit input tax deductions alloed under thisre#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 andcontains 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@uiredto be stated on the )*T invoice is missin# and the re#istrant recipient ofthe suppl is not entitled to claim an input tax deduction in relation to thesuppl unless and until the supplier issues a )*T invoice containin# thespecified information.

=3> 7otithstandin# para#raph =2>/ here the re#istrant recipient of a supplis entitled to claim an input tax deduction on )*T paid on the ac@uisitionof the thin# supplied but the amount of )*T stated on the )*T invoiceissued b the supplier is less than the )*T actuall char#eable on thesuppl A

=a> the )*T invoice is not invalid merel because it understates theamount of )*T char#eable on the supplB and

=b> for the purposes of calculatin# the amount of an input taxdeduction that the recipient is entitled to claim under the *ct/ theinput 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 supplierissues a )*T invoice containin# the amount of )*T actuallchar#eable on the suppl.

=4> * re#istrant recipient of a suppl ma/ in the tax period in hich theac@uisition as made/ claim the correct or an additional amount of inputtax deduction in an case here A

=a> the supplier purported to issue a )*T invoice but the documentissued is not a valid )*T invoice or the amount of )*T stated onthe invoice is less than the )*T actuall char#eable on the supplB

0a#e 33

DRAFT



35/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=b> the recipient re@uested the supplier/ ithin sixt das after the dateof 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 thesuppl/ 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 hereinformation re@uired to be stated on a tax credit note or tax debit note ismissin#/ 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 erereferences to a claim for input tax deduction b the supplier orrecipient/ 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# acorrected )*T invoice/ clearl marked HCorrected Invoice as such in

bold tpeface/ here A

=a> a document purportin# to be a )*T invoice as previousl issuedb the re#istrantB and

=b> the document referred to in subpara#raph =a> is not a valid )*Tinvoice or/ had para#raph =3> not applied/ ould not have been avalid )*T invoice.

PART 0I E4CE CREDIT AND RE9ND

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 inexcess of the amount properl char#ed must maintain and make availablefor inspection b the )*T Commissioner on re@uest documentar proof insupport of the claim in the form ofA

=a> )*T invoices/ )*T sales receipts/ tax credit notes/ and tax debitnotes issued in the transactions #ivin# rise to the claimB and

=b> records that explain the essential features of the transactions andho the relate to the excess amount claimed.

0a#e 34

DRAFT



36/63

Draft

Forc

onsu

ltation

=2> *n refund paable under 0art )II of the *ct is/ here a re#istrant hasmade 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 startsmakin# taxable supplies in the ordinar course of the taxable activitcarried 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 mission means a diplomatic a#ent or

consular officer ithin the meanin# of the )ienna ConventionBHinternational or#anisation means an or#anisation ithin the meanin# of

section 3=1> of the International 6r#anisations =Immunities and0rivile#es> *ct =Ch. 14> and includes the person servin# as head inThe ahamas and other eli#ible representatives of suchor#anisationB

Hmission means a diplomatic mission or consulate ithin the meanin# ofthe )ienna ConventionB

H)ienna Conventionmeans A

=a> the )ienna Convention on Consular 'elations scheduled tothe Consular 'elations and Commonealth 6fficers *ct =Ch.1'>B

=b> the )ienna Convention on Diplomatic 0rivile#es andImmunities scheduled to the Diplomatic 0rivile#es andImmunities *ct =Ch. 19>B

=2> * diplomatic a#ent or consular officer or the head in The ahamas of aninternational or#anisation ma appl/ on behalf of the mission oror#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 officialuse 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

0a#e 3"

DRAFT



37/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=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 taxunder 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 orhead of the international or#anisationB

=ii> a specimen of the si#nature of a diplomatic a#ent or consularofficer/ or an official of the or#anisation/ ho is A

=*> dele#ated authorit to si#n )*T returns and theapplication for refund and schedule of purchases in theabsence of the headB and

=> approved b the Commissioner.

="> The )*T Commissioner ma re#ister a mission or an internationalor#anisation under section 18 of the *ct/ hether or not the mission oror#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 oror#anisation ith the )*T Commissioner on a monthl basis as if it erea )*T return unless the Commissioner has #ranted the head of the missionor 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#isteredmission or international or#anisation must be accompanied b A

=a> supportin# documentation establishin# the amount of )*T paid inrelation to the ac@uisition or import made b the person entitled tothe 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 thesatisfaction of the Commissioner/ evidences A

=i> that a suppl to the mission or or#anisation as a taxablesupplB

=ii> the amount of tax included in the price of the supplB

=iii> that the person claimin# to be entitled to the refund made theac@uisition and paid the consideration for the supplB

=c> customs entr documentation or other evidence in relation to ataxable importation shoin# the amount of tax paid to theComptroller of Customs and the identit of the person b hom itas paidB and

=d> a schedule of purchases in +orm 7o. 1" .

0a#e 3%

DRAFT



38/63

Draft

Forc

onsu

ltation

=8> * mission or international or#anisation must/ here filin# an applicationfor refund A

=a> sub:ect to para#raph =%>/ cate#orie at the end of each tax period all)*T invoices or other supportin# documentation accordin# toclaims 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 thecase of an individual claimant/ the personFs diplomaticidentification card numberB

=c> complete the schedule of purchases in +orm 7o. 1" usin# theinformation on the )*T invoice or other supportin# documentationB

=d> total and attach the schedule of purchases to the )*T return to#etherith the supportin# documentation attached in the same order as itappears on the schedule of purchasesB and

=e> si#n in accordance ith para#raph =4>=b> the application for refundand the schedule of purchases.

=!> The )*T Commissioner must/ here the Commissioner is satisfied that anapplication for refund and schedule of purchases are correct/ ithin three

calendar months of receipt of the application and schedule issue a refundto the mission or international or#anisation b a of che@ue.

=1$> * mission or or#anisation receivin# a che@ue pursuant to para#raph =!> isresponsible for distributin# the refunds to the claimants.

=11> The )*T Commissioner must/ here the Commissioner is not satisfiedthat an application for refund and schedule of purchases are correct A

=a> notif the head of the mission or international or#anisation inritin# specifin# the reasons h the Commissioner is notsatisfiedB and

=b> ithin three calendar months of receipt of the application andschedule issue a refund for such part of the claim/ if an/ that theCommissioner is satisfied is correct.

PART 0II TA4;E4CL9I0E PRICIN7

3,. Ta&;e&"l#ive pri"in*.

=1> This re#ulation applies here a re#istrant offers #oods for retail sale.

0a#e 3&

DRAFT



39/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=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/ shothe 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, erorated/ specialrated/ exempt and other suppliesB or

=b> b asteriskin# taxable supplies/

provided a clear explanation of the method used is displaed prominentlat such places as are necessar to enable customers to identif/ before theenter into a transaction/ hether )*T has been included in the price of the

#oods.

PART 0III ENCE8 PENALTIE8 ADMINITRATI0EINE AND or to imprisonment for a term notexceedin# to ears or to both such fine and imprisonment.

=2> * person ho contravenes section 8! of the *ct commits an offence and isliable on conviction in the 'evenue Court/ here the tax properl paable

0a#e 38

DRAFT



40/63

Draft

Forc

onsu

ltation

b such person exceeds the tax paable on an assessment based on thefalse 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 inthe statementB and

=b> the amount b hich an refund applied for b such person ouldbe increased hen determined on the basis of the informationprovided in the statement.

=3> * person ho is declared an a#ent b the )*T Commissioner and hocontravenes section %!=2> of the *ct b failin# ithin the prescribed time

to pa mone or deliver propert specified in a notice issued b the )*TCommissioner 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 suchfine and imprisonment.

=4> * person ho/ in contravention of section !2 of the *ct/ fails to maintainconfidentialit 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 suchfine and imprisonment.

="> * person ho contravenes of fails to compl ith an provision of the *ctor these 'e#ulations for hich no penalt is prescribed under this 0artcommits an offence and is liable on conviction in the 'evenue Court to afine not exceedin# ten thousand dollars =M1$/$$$.$$> or to imprisonmentfor a term not exceedin# to ears or to both such fine and imprisonment.

3. ffen"e# '( 0AT offi"er.

=1> * )*T officer ho contravenes or fails to compl ith section 13="> ofthe *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# to ears or to both such fineand imprisonment.

=2> * )*T officer ho contravenes or fails to compl ith sections 13=4> or13=%> of the *ct commits an offence and is liable on conviction in the'evenue Court to a fine not exceedin# ten thousand dollars =M1$/$$$.$$>.

%/. ffen"e# '( 0AT re*i#trant.

=1> * re#istrant ho/ in contravention of section ! of the *ct and re#ulation

3! A

0a#e 3!

DRAFT



41/63

Draft

Forc

onsu

ltation

)*( *DD(D T* '(5*TI67-/ 2$13

=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 suchre#istrant in accordance ith the re#ulations or )*T 'ules/

commits and offence and is liable on conviction in the 'evenue Court to afine not exceedin# one hundred thousand dollars =M1$$/$$$.$$> or toimprisonment for a term not exceedin# telve months or to both such fineand 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 herehe carries on a taxable activitB or

=b> fails to displa a valid certificate of re#istration in a conspicuousplace at the location here he carries on a taxable activit/

commits an offence and is liable on conviction in the 'evenue Court to afine not exceedin# fift thousand dollars =M"$/$$$.$$> or to imprisonmentfor a term not exceedin# telve months or to both such fine andimprisonment.

=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 convictionin the 'evenue Court to a fine not exceedin# fift thousand dollars

=M"$/$$$.$$> or to imprisonment for a term not exceedin# telve monthsor to both such fine and imprisonment.

=4> * re#istrant ho in contravention of subsection =3> of section 4% fails tofile a )*T return in the prescribed form or ithin the prescribed time/ orto pa )*T due and paable/ for to or more consecutive or nonconsecutive tax periods/ commits an offence and is liable on conviction inthe '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 complith section %1=3> of the *ct commits an offence and is liable onconviction in the 'evenue Court to A

=a> a fine not exceedin# fift thousand dollars =M"$/$$$.$$>or to imprisonment for a term not exceedin# to ears or to bothsuch fine and imprisonmentB and

=b> pa an additional penalt e@ual to fifteen percent of the value of thetickets 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

0a#e 4$

DRAFT



42/63

Draft

Forc

onsu

ltation

an offence and is liable on conviction in the 'evenue Court to a fine notexceedin# fift thousand dollars =M"$/$$$.$$> or to imprisonment for a

term not exceedin# to 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 dascontrar to subsection =1>B

=b> issuin# more than one )*T invoice in respect of a taxable supplcontrar to para#raph =a> of subsection =3>B

=c> failin# to compl ith a re@uest ithin the fourteen da periodcontrar 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=&>/

commits an offence and is liable on conviction in the 'evenue Court to afine not exceedin# ten thousand dollars =M1$/$$$.$$> or to imprisonmentfor a term not exceedin# six months or to both such fine andimprisonment.

=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 onconviction in the 'evenue Court to a fine not exceedin# ten thousanddollars =M1$/$$$.$$> or to imprisonment for a term not exceedin# sixmonths or to both such fine and imprisonment.

%1. ffen"e# '( ta&a'le per#on.

=1> * taxable person ho/ in contravention of section 18 of the *ct/ fails toappl 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>/

commits an offence and is liable on conviction in the 'evenue Court to afine not exceedin# one hundred thousand dollars =M1$$/$$$> or toimprisonment for a term not exceedin# telve months or to both such fineand imprisonment.

0a#e 41

DRAFT



43/63


44/63

Draft

Forc

onsu

ltation

=c> submits an import declaration that fails to compl ith subsection=3>/

commits an offence and is liable on conviction in the 'evenue Court to afine not exceedin# to hundred fift thousand dollars =M2"$/$$$> or toimprisonment for a term not exceedin# telve months or to both such fineand imprisonment.

%3. ffen"e# '( "ompanie#8 ai!er# an! a'ettor#.

=1> (ver person ho/ at the time an offence under this 0art as committedb 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 othersimilar officer/

also commits the offence and is liable on conviction in the 'evenue Courtto 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 knoled#e orconsentB and

=b> such person exercised such care/ dili#ence/ and skill to prevent thecommission of the offence b the compan as ou#ht to have beenexercised havin# re#ard to the nature of such personEs functions inall the relevant circumstances.

=3> * person ho aids or abets the commission b another of an offenceunder this 0art also commits such offence and is liable on conviction inthe 'evenue Court to the same penalties as the person hom he aided orabetted in committin# such offence.

%%. A!mini#trative fine#.

=1> The Central 'evenue *#enc ma not impose under section 1" of the *ctan administrative fine on a person here in respect of the same act oromission constitutin# the contravention or noncompliance to hich suchfine relates such person has alread been convicted of an offence underthis 0art.

=2> The Central 'evenue *#enc must A

=a> ithdra a prosecution for an offence hich/ after pament in fullof an administrative fine has been made ithin the prescribed time/is instituted in respect of the same act or omission constitutin# thecontravention or noncompliance to hich the fine r