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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.

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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 April 1, 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 April 1, 2026) most unprepared/non-cooked grocery items, including fresh produce, meats, fish, and baby food, following a phased cut from 10% to 5% (April 1, 2025) and then to 0% (April 1, 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:

  1. Confirm your taxable supplies to Bahamian customers exceed BSD 100,000 over 12 months.

  2. Register through the DIR online tax portal.

  3. Charge 10% VAT on taxable business-to-consumer sales.

  4. Apply the reverse charge on sales to VAT-registered businesses.

  5. 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].

Sources

  1. Department of Inland Revenue — About VAT: https://inlandrevenue.finance.gov.bs/value-added-tax/about-vat/

  2. Department of Inland Revenue — VAT FAQs (registration and filing): https://inlandrevenue.finance.gov.bs/value-added-tax/faqs/

  3. Department of Inland Revenue — VAT fees, fines and penalties: https://inlandrevenue.finance.gov.bs/value-added-tax/fees-fines-and-penalties/

  4. Department of Inland Revenue — 5% VAT reduction on selected medical supplies: https://inlandrevenue.finance.gov.bs/5-vat-reduction-on-selected-medical-supplies/

Frequently Asked Questions

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