Bahamas VAT Guide for 2026: Rates, Registration & Filing
The Bahamas applies a 10% VAT across most goods and services. Covers the registration threshold, taxable scope, and filing requirements for businesses selling in the country.
Last updated
Key Takeaways
The Bahamas charges VAT at a standard rate of 10% (cut from 12% in 2022), with a 0% rate for exports, breadbasket staples, and — as of 1 April 2026 — most unprepared grocery items following a phased cut from 10% to 0%. A business registers once taxable supplies exceed BSD 100,000 in any 12-month period; non-resident suppliers of electronic services to Bahamian consumers register at the same threshold and charge 10% on B2C sales, with B2B supplies handled by reverse charge. Financial services are exempt; SaaS and digital services are taxable at 10%.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Groceries
Zero-rated (from Apr 2026)
Sales Tax Rates
The Bahamas charges Value Added Tax at a standard rate of 10%, cut from 12% on 1 January 2022 [1]. A 0% rate applies to exports, breadbasket staples, and (as of 1 April 2026) most unprepared/non-cooked grocery items, including fresh produce, meats, fish, and baby food, following a phased cut from 10% to 5% (1 April 2025) and then to 0% (1 April 2026). Under the VAT (Amendment) (No. 2) Act 2025, selected medical supplies are taxed at a reduced 5% rate effective 1 September 2025 [4]. The tax authority is the Department of Inland Revenue (DIR).
Rate | Applies to |
|---|---|
Standard 10% | Most goods, services, and digital supplies |
Reduced 5% | Selected medical supplies, from 1 September 2025 [4] |
Zero 0% | Exports, listed zero-rated supplies, and basic food items |
For more detail, see our LATAM tax guides.
Registration or Nexus Threshold
A business registers for VAT once its taxable supplies exceed BSD 100,000 in any 12-month period [2]. The same threshold reaches non-resident suppliers of electronic services to Bahamian consumers, who register and charge 10% on business-to-consumer sales; supplies to VAT-registered businesses are handled by reverse charge, with the customer accounting for the tax [2].
How to register for Bahamian VAT:
Confirm your taxable supplies to Bahamian customers exceed BSD 100,000 over 12 months.
Register through the DIR online tax portal.
Charge 10% VAT on taxable business-to-consumer sales.
Apply the reverse charge on sales to VAT-registered businesses.
File and remit on the assigned schedule.
Filing Frequency & Deadlines
VAT returns are filed online and are due within 21 days of the end of each tax period [2]. Businesses with annual turnover above BSD 5 million file monthly, and those below file quarterly [2].
Exemptions
Exports and listed supplies are zero-rated, and financial services and certain other supplies are exempt [1]. SaaS and other digital services supplied to Bahamian consumers are taxable at 10% [2].
Penalties
The DIR sets late-filing and late-payment penalties under the VAT Act, and interest runs on unpaid tax [3]. An approved filing extension does not defer payment: interest and the late-payment penalty still apply where the tax is paid late [2][3].
Frequently Asked Questions
Bahamas VAT Calculator
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Bahamas · VATRates as of August 2026. Source: Department of Inland Revenue: VAT FAQs (opens in a new tab); VAT (Amendment) Bill 2026 (opens in a new tab).
Bahamas · Standard rate
10%
VAT rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.