# Bahamas VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/latam/bahamas
Published: July 16, 2026

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.

- **SaaS:** Taxable
- **Digital Goods:** Taxable
- **Groceries:** Zero-rated (from Apr 2026)

## 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

## 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](/sales-tax-guides/latam).

## 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].

## Sources

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

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

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

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

## Frequently Asked Questions

### What is the Bahamas VAT rate in 2026?

10% standard, cut from 12% in January 2022, with a 0% rate on exports and listed supplies.

### Do foreign digital sellers register for VAT in the Bahamas?

Yes, once supplies to Bahamian customers exceed BSD 100,000 over 12 months. Sales to VAT-registered businesses use the reverse charge.

### Is SaaS taxable in the Bahamas?

Yes. SaaS and other digital services supplied to Bahamian consumers are taxable at 10%.

### What is the VAT registration threshold in the Bahamas?

BSD 100,000 in taxable supplies over any 12-month period.

### How often is VAT filed in the Bahamas?

Within 21 days of each period: monthly above BSD 5 million in turnover, quarterly below.

### Does the Bahamas tax exports?

No. Exports are zero-rated.

## US Sales Tax Calculator