(Draft) VAT Bill - Bahamas

COMMONWEALTH OF THE BAHAMAS
Ministry of Finance

Draft Value Added Tax Bill

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 BILL, 2013
Arrangemen !" Se#$!n%
Se#$!n
&ART I ' &RELIMINAR( )
1. Short title and commencement.............................................................................5
2. Interpretation........................................................................................................5
3. Application.........................................................................................................13
&ART II ' IM&OSITION AND LIABILIT( FOR &A(MENT OF VALUE
ADDED TAX 14
4. Imposition of tax................................................................................................14
5. Persons liable to pay and account for tax...........................................................15
6. ates of tax........................................................................................................15
!. "xempt supplies and exempt importations.........................................................16
#. "xempt persons .................................................................................................16
$. %ax&exclusi'e pricin(.........................................................................................16
1). Interest on unpaid tax treated as tax...................................................................16
&ART III ' ADMINISTRATION 1*
11. %he *A% +i'ision of the ,entral e'enue A(ency.............................................1!
12. -unctions and po.ers of the *A% ,ommissioner...............................................1!
13. *A% officers.......................................................................................................1$
14. ,ommissioner /eneral may appro'e in'estments made prior to re(istration.....2)
15. Administrati'e fines and .arnin( letters............................................................2)
16. *A% /uidelines..................................................................................................22
1!. Ad'ance *A% rulin(s.........................................................................................22
&ART IV ' REGISTRATION 23
1#. 0andatory re(istration.......................................................................................23
1$. *oluntary re(istration.........................................................................................24
2). e(istration threshold........................................................................................25
21. Application for re(istration................................................................................25
22. /rant of re(istration...........................................................................................26
23. 1nre(istered taxable person remains liable to pay and account for *A%............2!
24. e(istrant must display certificate of re(istration..............................................2!
25. 2otice of chan(e of circumstances.....................................................................2#
26. ,ancellation and suspension of re(istration.......................................................2#
2!. e(ister open to the public.................................................................................3)
DRAFT
Version: November 4 2013
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&ART V ' SU&&LIES OF GOODS AND SERVI+ES 30
2#. ules relatin( to a supply of (oods....................................................................3)
2$. ules relatin( to a supply of ser'ices.................................................................31
3). %reatment of supplies of (oods and ser'ices in special cases.............................31
31. ules relatin( to time of supply..........................................................................33
32. ules relatin( to place of supply........................................................................35
33. %reatment of place of supply in special cases.....................................................36
34. ,alculation of the 'alue of a taxable supply.......................................................36
35. ,alculation of the consideration for a taxable supply.........................................3!
36. ules relatin( to 'alue of a taxable supply.........................................................3!
3!. ,alculation of the 'alue of a hotel accommodation or tour pac3a(e..................3$
&ART VI ' IM&ORTS OF GOODS AND SERVI+ES 3,
3#. %ime of import of (oods and ser'ices................................................................3$
3$. 0ixed imports....................................................................................................3$
4). ,alculation of the 'alue of a taxable importation...............................................4)
41. ,alculation of the consideration for a taxable importation.................................4)
42. ules relatin( to 'alue of a taxable importation.................................................41
43. Payment of tax for a taxable importation of (oods.............................................41
44. Payment of tax for a taxable importation of ser'ices..........................................42
&ART VII - +AL+ULATION OF TAX &A(ABLE B( TAXABLE AND
OT.ER &ERSONS 42
45. %ax payable by re(istrants..................................................................................42
46. *A% return..........................................................................................................43
4!. %ax payable by unre(istered taxable person.......................................................45
4#. %ax payable by auctioneer..................................................................................45
4$. ules relatin( to a claim for input tax deduction................................................45
5). Post&supply ad4ustments to output tax................................................................4#
51. Post&supply ad4ustment due to bad debt.............................................................5)
52. *A% in'oices and *A% sales receipts..................................................................51
53. %ax credit notes and tax debit notes....................................................................51
54. ,arry for.ard of excess credits and refund of tax..............................................52
55. Interest on o'erpayment.....................................................................................54
56. 5ther persons eli(ible for tax refund..................................................................55
&ART VIII - ASSESSMENTS ))
5!. ules relatin( to assessments.............................................................................55
5#. Assessment as e'idence in proceedin(s6 other documents.................................5!
&ART IX ' INVESTIGATOR( &O/ERS AND ENFOR+EMENT )0
5$. In'esti(atory po.ers of the ,ommissioner and *A% officers.............................5#
6). *A% officer7s po.ers of entry and sei8ure..........................................................6)
61. ,ommissioner may re9uest security...................................................................61
62. Sei8ure of (oods and 'ehicles............................................................................61
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AG'S DRAFT BILL
63. +istress proceedin(s...........................................................................................63
64. i(ht of entry to execute sei8ure and distress.....................................................64
65. e(istration of (oods prohibited until payment of tax.......................................64
66. eco'ery of tax from recipient of supply in case of fraud..................................65
6!. ,ommissioner has po.er to reco'er tax from a(ent...........................................66
6#. +uties of recei'ers.............................................................................................6!
6$. ,ommissioner has po.er to declare representati'es..........................................6#
!). Schemes for obtainin( tax benefits.....................................................................6$
!1. :iability of a director or similar officer of a company to pay *A%.....................6$
!2. %emporary closure of business premises............................................................!)
!3. Publication of names of *A% defaulters.............................................................!1
&ART X ' RE+ORD 1EE&ING AND A++OUNTS *1
!4. eliable accountin( records to be 3ept...............................................................!1
!5. 2ature of records to be 3ept...............................................................................!2
&ART XI ' OB2E+TIONS AND A&&EALS *3
!6. 5b4ection to a decision of the *A% ,ommissioner.............................................!3
!!. Appeal to the Appeals Panel...............................................................................!5
!#. ;earin( by Appeals Panel..................................................................................!5
!$. Appeal to the e'enue ,ourt.............................................................................!6
&ART XII ' MIS+ELLANEOUS *3
#). *A% or taxpayer identification number...............................................................!6
#1. 5fficers of unincorporated bodies......................................................................!6
#2. +issolution of partnerships and other unincorporated bodies or associations.....!!
#3. +eath or insol'ency of taxable person...............................................................!#
#4. 0ort(a(ee in possession6 trustee........................................................................!#
#5. *ariation of cost on a chan(e in *A% rate...........................................................!#
#6. Application of payments....................................................................................!$
#!. 0a3in( of false or misleadin( statements..........................................................!$
##. emission of tax.................................................................................................#)
#$. ,ontra'ention of tax la.s..................................................................................#1
$). ,onfidentiality....................................................................................................#1
$1. e(ulations........................................................................................................#2
$2. "lectronic communications................................................................................#3
$3. %ransitional pro'isions.......................................................................................#3
$4. epeals...............................................................................................................#5
FIRST S+.EDULE 4SE+TION 35 03
<"5 A%"+ S1PP:I"S A2+ I0P5%A%I52S #6
SE+OND S+.EDULE 4SE+TION 35 ,0
SP",IA: A%"+ S1PP:I"S $)
DRAFT
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T.IRD S+.EDULE 4SE+TION *5 ,1
"="0P% S1PP:I"S A2+ I0P5%A%I52S $1
OB2E+TS AND REASONS ,)
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*A:1" A++"+ %A= >I::6 2)13
c
VALUE ADDED TAX BILL, 2013
A BILL FOR AN A+T TO &ROVIDE FOR T.E IM&OSITION
ASSESSMENT AND +OLLE+TION OF VALUE ADDED TAX ON T.E
SU&&L( AND IM&ORTATION OF GOODS AND SERVI+ES IN T.E
BA.AMAS AND FOR +ONNE+TED MATTERS
Ena#e6 78 9e &ar:$amen !" T9e Ba9ama%
PART I PRELIMINARY
1. Short title and commencement.
?1@ %his Act may be cited as the *alue Added %ax Act6 2)13.
?2@ Sub4ect to subsection ?3@6 this Act comes into force on the 1
st
day of Auly6
2)14.
?3@ %he 0inister may appoint by notice published in the /a8ette a different
date for the comin( into force of section $4 of this Act.
2. Interpretation.
?1@ In this Act6 unless the context other.ise re9uires B
;A<<ea:% +!mm$%%$!ner%= means the ,ommissioners constitutin( the
Appeals PanelC
;A<<ea:% &ane:= means the Panel established under section 32 of the
,entral e'enue A(ency Act ?No. of 2013@ C
;7>%$ne%%= includes B
?a@ a trade6 profession6 'ocation6 'enture6 or underta3in(C
?b@ the pro'ision of personal ser'ices6 or technical and
mana(erial s3ills6 and any ad'enture or concern in the nature
of trade that does not include employmentC
Pa(e & 5
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*A:1" A++"+ %A= >I::6 2)13
?c@ the pro'ision by a club6 association or or(anisation6 for a
subscription or other consideration6 of the facilities or
ad'anta(es a'ailable to its membersC
?d@ the admission6 for consideration6 of persons to any premisesC
?e@ the exploitation of tan(ible or intan(ible property for the
purpose of obtainin( income on a continuin( basis from such
propertyC
;+enra: Re?en>e Agen#8= means the a(ency established under section
2 of the ,entral e'enue A(ency Act ?No. --of 2013@C
;+!mm$%%$!ner Genera:= means the ,ommissioner /eneral for e'enue
of the ,entral e'enue A(encyC
;+!mm$%%$!ner= or ;VAT +!mm$%%$!ner= means the ,ommissioner for
e'enue at the head of the *alue Added %ax +i'ision of the ,entral
e'enue A(ency and includes a +eputy ,ommissioner for e'enue
or an Assistant ,ommissioner for e'enueC
;#!n%r>#$!n g!!6% !r %er?$#e%= means (oods or ser'ices supplied
directly in the construction6 ma4or reconstruction6 manufacture6 or
extension of a buildin( or ci'il en(ineerin( .or3C
;#re6$ agreemen= means a B
?a@ hire&purchase a(reement under the ;ire Purchase Act ?Ch.
342@ and includes a conditional sale a(reement and a credit
sale a(reementC
?b@ finance lease as determined by criteria prescribed in
re(ulationsC
;+>%!m% Managemen A#= means the ,ustoms 0ana(ement Act ?No.
30 of 2011@C
;T9e Ba9ama%= means the entire territory of the ,ommon.ealth of %he
>ahamas6 includin( its territorial .aters6 airspace and its "xclusi'e
"conomic <oneC
;e@em< $m<!ra$!n= or ;e@em< $m<!r= means an import of (oods or
ser'ices into %he >ahamas by any person on .hich 'alue added tax
is not char(eableC
;e@em< <er%!n= means a diplomatic mission or international
or(anisation6 and their eli(ible staff members6 in relation to the
ac9uisition of a 9ualifyin( (ood or ser'ice comprisin( a taxable
supply or a taxable importationC
;e@em< %><<:8= means a supply of (oods or ser'ices in %he >ahamas by
any person that is not char(eable to 'alue added taxC
;e@<!r= has the meanin( ascribed in subsection ?2@C
Pa(e & 6
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*A:1" A++"+ %A= >I::6 2)13
;"$nan#$a: $n%$>$!n= means a financial institution .ithin the meanin(
of sections 2 and 3 of the -inancial %ransactions eportin( Act
?Ch. 368@C
;g!!6%= means real or tan(ible personal property and utilities but does
not include moneyC
;G!?ernmen= means the /o'ernment of the ,ommon.ealth of %he
>ahamas and includes a ministry6 department6 statutory body6
a(ency6 local (o'ernment council6 or other entity of /o'ernmentC
;.aAB%7$::= means the ;a.3sbill ,ree3 A(reement scheduled to the
;a.3sbill ,ree36 /rand >ahama ?+eep Dater ;arbour and
Industrial Area@ Act ?Ch. 261@6 as amendedC
;$m<!rer= B
?a@ in relation to the importation of (oods6 has the meanin(
ascribed in the ,ustoms 0ana(ement ActC and
?b@ in relation to the importation of ser'ices6 means the person
importin( the ser'ices and the resident to .hom the ser'ices
are supplied6 4ointly and se'erallyC
;$n<> a@= means the *A% paid or payable by a taxable person B
?a@ on taxable supplies to himC
?b@ on taxable importations by himC
;$n<> a@ 6e6>#$!n= means the tax deduction allo.able to a re(istrant
.here taxable supplies to him6 or taxable importations by him6 are
utili8ed in the production of ne. taxable suppliesC
;:$#en%e6 "$nan#$a: %er?$#e% <r!?$6er= means a licensed financial
institutionC
;M$n$%er= means the 0inister responsible for -inanceC
;m!ne8= means B
?a@ a coin or paper currency reco(nised in %he >ahamas as le(al
tenderC
?b@ a coin or paper currency of a forei(n country that is used or
circulates in %he >ahamas as currencyC
?c@ a bill or exchan(e6 promissory note6 ban3 draft6 postal order6
money order6 or similar instrument6 other than an item of
numismatic interestC
?d@ a credit card or debit card that is used as currencyC
;n!n-re%$6en= means a person .ho does not6 and is not deemed to6 carry
on a taxable acti'ity in %he >ahamasC
;n!n-a@a7:e <er%!n= means a person .ho is not a taxable person for the
purposes of this ActC
;!><> a@= means the *A% char(ed on a taxable supply by a taxable
person made to another personC
Pa(e & !
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*A:1" A++"+ %A= >I::6 2)13
;<ea#e !""$#er= means B
?a@ a member of the oyal >ahamas Police -oreceC
?b@ a member of the oyal >ahamas +efence -orceC
;<er%!n= includes B
?a@ the /o'ernmentC
?b@ a natural person6 corporation6 company6 trust6 partnershipC
?c@ an unincorporated association or bodyC
;&!r Area= means the Port Area as defined in ;a.3sbillC
;&!r :$#en%ee= means the /rand >ahama Port Authority or a licensee of
the Port Authority entitled to the tax benefits conferred under the
;a.3sbill ,ree36 /rand >ahama ?+eep Dater ;arbour and
Industrial Area@ Act ?Ch. 261@C
;<!%$$?e rae= means the standard rate or the special rate at .hich *A% is
char(eableC
;<re%#r$7e6= means prescribed by or in re(ulations made under or
pursuant to this ActC
;<r!m!er !" <>7:$# enera$nmen= means a person .ho arran(es the
sta(in( or supply of public entertainmentC
;<>7:$# enera$nmen= means any musical entertainment6 theatrical
performance6 comedy sho.6 dance performance6 circus sho.6 or
sho. connected .ith a festi'al6 or any similar e'ent6 to .hich the
public is in'itedC
;reg$%ra7:e g!!6%= B
?a@ means (oods re9uirin( re(istration under any la. for the
time bein( in force .ithin %he >ahamas .hereby a
re(isterin( authority issues to the applicant upon re(istration
a permit6 licence6 certificate6 or other authorisationC
?b@ includes an aircraft6 boat6 fishin( 'essel6 ship6 yacht6 motor
cycle6 motor 'ehicle6 tractor6 cara'an6 firearms6 or trailerC
;reg$%ran= means a person .ho is re(istered pursuant to Part I*C
;reg$%ran "$nan#$a: $n%$>$!n= means a financial institution that is
re(istered under section 1# or section 1$C
;reg$%ran re#$<$en= means a re(istrant .ho recei'es a supply of (oods
or ser'icesC
;reg$%ran %><<:$er= means a re(istrant .ho ma3es a supply of (oods or
ser'icesC
;reg$%ra$!n 9re%9!:6= means the amount of turno'er from a taxable
acti'ity obtained by a person on an annual or lesser basis .hich
re9uires6 or entitles6 such person to apply for re(istrattion as a
taxable person under this ActC
Pa(e & #
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*A:1" A++"+ %A= >I::6 2)13
;re%$6en= means B
?a@ the /o'ernmentC
?b@ a citi8en or permanent residentC
?c@ any person to the extent such person carries on a taxable or
other acti'ity .ithin %he >ahamasC
;Re?en>e +!>r= means the e'enue ,ourt established under section 3
of the e'enue ,ourt Act ?No. of 2013@
;%a:e= means B
?a@ an a(reement of purchase and saleC
?b@ any other transaction .hereby o.nership of (oods passes or
is to pass from one person to anotherC
;%e:"-%><<:8= means6 in relation to section 3)?#@6 a taxable supply by a
taxable person made to himself or that is deemed to be made to
himselfC
;%><<:8= includes all forms of supply6 but excludes anythin( done
other.ise than for a considerationC
;%><<:8 !" g!!6%= means a supply referred to in Part *C
;%><<:8 !" %er?$#e%= means a supply referred to in Part *C
;a@= means 'alue added taxC
;a@a7:e a#$?$8= means any acti'ity .ithin %he >ahamas carried on in
the form of a business B
?a@ .hich is carried on continuously or re(ularly by a person6
.hether or not for a pecuniary profitC and
?b@ .hich for a consideration in'ol'es or is intended to in'ol'e6
in .hole or in part6 the supply of taxable supplies to another
person or the import of taxable importations6
but does not include B
?i@ an acti'ity carried on essentially as a pri'ate
recreational pursuit or hobbyC
?ii@ an en(a(ement6 occupation or employment under a
contract of ser'ice or as a director of a companyC
?iii@ an acti'ity to the extent it comprises the production6
ac9uisition or ma3in( of exempt supplies and exempt
importationsC
;a@ "ra#$!n= or ;VAT "ra#$!n= means in relation to a taxable supply
the fraction calculated in accordance .ith the formula 7 di'ided by
?1 E @7 .here FG is the rate of *A% expressed as a percenta(e
applicable to the price of the taxable supplyC
;a@a7:e $m<!ra$!n= means B
Pa(e & $
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*A:1" A++"+ %A= >I::6 2)13
?a@ an importation from outside %he >ahamas by any person of
(oods or ser'ices into %he >ahamas other than an exempt
importationC
?b@ in relation to the Port Area6 an importation from outside %he
>ahamas by any person of (oods or ser'ices into the Port
Area other than an exempt importation or an importation
referred to in subsection ?3@ of section 3C
;a@ <er$!6= means a period of one calendar monthC
;a@a7:e <er%!n= means a person .ho carries on a taxable acti'ity and is
re(istered6 or is re9uired to apply for re(istration6 pursuant to Part
I*C
;a@ rae%= means the rates referred to in section 4C
;a@a7:e %><<:8= means B
?a@ a supply of (oods and ser'ices in %he >ahamas made by a
person in the course or furtherance of a taxable acti'ity
carried on by such person6 other than an exempt supplyC
?b@ in relation to the Port Area6 a supply of (oods and ser'ices in
the Port Area made by a person in the course or furtherance
of a taxable acti'ity carried on by such person other than an
exempt supply or a supply referred to in subsection ?3@ of
section 3C
;a@a$!n !""$#er= means a public officer or contract officer in the ,entral
e'enue A(encyC
;a@a7:e ran%a#$!n= means a transaction B
?a@ in'ol'in( a taxable supply or a taxable importationC
?b@ made by or on behalf of a taxable person in the course or
furtherance of a taxable acti'ity carried on by such personC
;!Ben= includes6 in relation to section 366 a 'oucher6 (ift certificate6 or
stampC
;>rn!?er= means the total re'enues in money and money7s .orth
accruin( to a person from his taxable acti'ities durin( the precedin(
t.el'e or fe.er months6 or such other accountin( period as allo.ed
under Part I*6 includin( all cash6 credit sales and commissions6
.ithout any deductions .hatsoe'erC
;>$:$$e%= or ;>$:$8 g!!6%= means thermal or electrical ener(y6 heat6
(as6 refri(eration6 air conditionin(6 and .aterC
;?a:>e= means the 'alue of (oods and ser'ices by reference to .hich
'alue added tax is char(eable on taxable supplies and taxable
importationsC
;?a:>e a66e6 a@= or ;VAT= means B
Pa(e & 1)
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*A:1" A++"+ %A= >I::6 2)13
?a@ the tax referred to in section 4C
?b@ any other amount to the extent that such amount is treated as
*A% for the purposes of this ActC
;Va:>e A66e6 Ta@ D$?$%$!n= or ;VAT D$?$%$!n= means the *alue Added
%ax +i'ision of the ,entral e'enue A(encyC
;?a:>e a66e6 a@ $6en$"$#a$!n n>m7er= or ;VAT $6en$"$#a$!n
n>m7er= means the uni9ue identifier assi(ned to a re(istrant
pursuant to Part I*C
;VAT G>$6e:$ne%= means (uidelines issued under section 16 by the
,entral e'enue A(ency in respect of a matter under this Act
in'ol'in( 'alue added tax and include B
?a@ *A% ulesC
?b@ *A% /uidelinesC
?c@ *A% ecommended Practices and ProceduresC
?d@ *A% Practice 2otes and +irectionsC
;VAT $n?!$#e= means the in'oice a re(istrant is re9uired to issue .hen
ma3in( a taxable supply to another re(istrantC
;VAT !""$#er= means a taxation officer assi(ned to the *alue Added %ax
+i'isionC
;VAT re>rn= means the monthly return re9uired to be filed by a
re(istrant in accordance .ith section 46C
;VAT %a:e% re#e$<= means the receipt a re(istrant is re9uired to issue
.hen ma3in( a taxable supply to a recipient .ho is not a re(istrantC
;Cer! rae6 $m<!ra$!n= means a taxable importation that is char(eable
to *A% B
?a@ at a 8ero percent rate on such (oods and ser'ices as may be
prescribed in the First ScheduleC
?b@ .here a re(istrant is allo.ed to ma3e a claim for input tax
deduction in relation to the importationC
;Cer!-rae6 %><<:8= means a taxable supply that is char(eable to *A% B
?a@ at a 8ero percent rate on such (oods and ser'ices as may be
prescribed in the First ScheduleC
?b@ .here a re(istrant is allo.ed to ma3e a claim for input tax
deduction in relation to the supply.
?2@ Sub4ect to this Act and the re(ulations B
?a@ an export of (oods or ser'ices from a place of business .ithin %he
>ahamas is a supply made in %he >ahamas .hich6 unless exempt6
is char(eable to tax as a taxable supply .here the export is B
?i@ by or on behalf of a taxable personC
Pa(e & 11
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?ii@ made in the course or furtherance of a taxable acti'ity carried
on by such personC
?b@ sub4ect to para(raph ?c@6 an export under para(raph ?a@ occurs
.here B
?i@ (oods or ser'ices are transported or transferred6 by
.hatsoe'er means6 from .ithin %he >ahamas to a country or
place outside %he >ahamasC
?ii@ the use6 benefit or ad'anta(e of the (oods or ser'ices is
obtained or en4oyed in the country or place to .hich they
ha'e been transported or transferredC and
?c@ not.ithstandin( para(raph ?b@6 an export under para(raph ?a@ also
occurs .here mo'able (oods are placed on board an aircraft or
'essel in %he >ahamas6 that is en route to a country or place outside
%he >ahamas6 for use or consumption in such aircraft or 'essel.
?3@ 2ot.ithstandin( subsection ?2@6 for the purposes of this Act B
?a@ the pro'ision by a person domiciled outside %he >ahamas of
telecommunications ser'ices or electronic commerce for the use6
en4oyment6 benefit or ad'anta(e of persons .ithin %he >ahamas is
a B
?i@ taxable supply of ser'ices made .ithin %he >ahamasC
?ii@ taxable acti'ity carried on by such personC
?b@ a person referred to in para(raph ?a@ is deemed to be resident in %he
>ahamas to the extent such person6 or an a(ent of such person6
carries on the taxable acti'ity and ma3es the taxable supplies of
ser'icesC
?c@ a reference to B
?i@ ;e:e#!mm>n$#a$!n %er?$#e%= means ser'ices relatin( to
the transmission6 emission or reception of si(nals6 .ritin(6
ima(es and sounds or information of any nature by .ire6
radio6 optical or other electroma(netic systems6 includin( the
pro'ision of access to (lobal information net.or3s6 and the
related transfer or assi(nment of the ri(ht to use capacity for
such access6 transmission6 emission or receptionC
?ii@ ;e:e#r!n$# #!mmer#e= includes business transactions
ta3in( place throu(h the electronic transmission of data o'er
communications net.or3s such as the internetC
?d@ examples of telecommunication ser'ices and electronic commerce
include6 but are not limited to B
?i@ .ebsites6 .eb&hostin(6 distance maintenance of pro(rammes
and e9uipmentC
?ii@ soft.are and the updatin( of soft.areC
Pa(e & 12
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?iii@ ima(es6 text and information6 and databases a'ailableC
?i'@ political6 cultural6 artistic6 sportin(6 scientific6 and
entertainment broadcasts and e'entsC and
?'@ distance teachin(.
3. Application.
?1@ Sub4ect to the pro'isions of this section6 this Act applies in %he >ahamas
to e'ery B
?a@ taxable supply made by a taxable personC and
?b@ taxable importation by any person.
?2@ %his Act applies in the Port Area .here B
?a@ a taxable supply .ithin the Port Area is made by B
?i@ a taxable person .ho is a Port licensee to a person .ho is not
a Port licenseeC
?ii@ a taxable person to a person .ho is a Port licensee6 .here the
supply is not of a 3ind or usa(e .ithin the meanin( of section
2 of ;a.3sbillC
?iii@ a taxable person to another person neither of .hom is a Port
licenseeC
?b@ a taxable importation from outside %he >ahamas is made into the
Port Area by a person .ho B
?i@ is not a Port licenseeC
?ii@ is a Port licensee but the (oods or ser'ices are not of a 3ind
or usa(e .ithin the meanin( of section 2 of ;a.3sbillC
?c@ a taxable importation of (oods from outside %he >ahamas is made
into the Port Area for the personal use of any personC
?d@ a taxable supply of (oods in the Port Area is made by a taxable
person for the personal use of any personC
?e@ a taxable person .ithin the Port Area6 .hether or not a Port
licensee6 ma3es a taxable supply .ithin %he >ahamas to a recipient
outside the Port AreaC
?f@ a taxable person in another part of %he >ahamas ma3es a taxable
supply to a recipient in the Port Area .ho B
?i@ is not a Port licenseeC
?ii@ is a Port licensee but the supply is not of a 3ind or usa(e
.ithin the meanin( of section 2 of ;a.3sbill.
?3@ %his Act does not apply to transactions ta3in( place .ithin the Port Area
.here B
Pa(e & 13
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?a@ a supply .ithin the Port Area is made by a taxable person .ho is a
Port licensee to another Port licensee and the (oods or ser'ices are
of a 3ind and usa(e referred to in clause 2 of ;a.3sbillC and
?b@ an importation from outside %he >ahamas is made into the Port
Area by a Port licensee and the (oods or ser'ices are of a 3ind and
usa(e referred to in clause 2 of ;a.3sbill.
?4@ %his Act applies to exempt persons.
?5@ %his Act does not apply to a supply of ser'ices by an employee to an
employer by reason of employment.
?6@ %his Act applies to the /o'ernment from the date a ministry6 department6
statutory body6 a(ency6 local (o'ernment council6 or other entity of
/o'ernment commences a taxable acti'ity.
PART II IMPOSITION AN LIA!ILITY "OR PAYMENT O"
#AL$E AE TA%
&. Impo'ition o( ta).
?1@ Sub4ect to this Act6 there is imposed on and from the date this Act comes
into force a tax6 called 'alue added tax6 char(eable on e'ery B
?a@ taxable supply made by a taxable personC and
?b@ taxable importation made by any person.
?2@ A taxable transaction char(eable to tax under both para(raphs ?a@ and ?b@
of subsection ?1@ is treated as a taxable supply char(eable under para(raph
?a@.
?3@ *alue added tax is char(eable at a percenta(e rate of the 'alue of a taxable
supply and taxable importation determined in the manner prescribed by
this Act and the re(ulations.
?4@ A person .ho is not a taxable person6 or .ho is an unre(istered taxable
person6 must not collect6 ad'ertise or 9uote 'alue added tax in respect of a
taxable supply by him to another person.
?5@ 2ot.ithstandin( any other la.6 enacted after the enactment or comin(
into force of this Act B
?a@ an exemption from a char(e of *A% (ranted in such other la. is of
no effect for the purposes of this Act until and unless a
correspondin( exemption from *A% is (ranted under this ActC and
?b@ the imposition in such other la. of a rate of *A% on a taxable
supply or taxable importation that is contrary to the rates imposed
by section 6 is of no effect for the purposes of this Act until and
Pa(e & 14
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unless an amendment is made to this Act imposin( such rate of
*A%.
?6@ 2o reference to tax in any Act6 enacted before the enactment or comin(
into force of this Act6 shall be treated as a reference to *A% under this Act.
?!@ Subsections ?5@ and ?6@ do not apply to the enactment of B
?a@ the ,entral e'enue A(ency Act ?No. -- of 2013@C and
?b@ the e'enue ,ourt Act (No. of 2013@.
*. Per'on' lia+le to pa, and acco-nt (or ta).
?1@ Sub4ect to this Act and the re(ulations6 liability to pay and account for
'alue added tax B
?a@ in the case of a taxable supply6 falls on the taxable person ma3in(
the supply .ho must account for and pay tax in relation to the
supply in accordance .ith Part *II and Part *IIIC
?b@ in the case of a taxable importation of (oods6 falls on the importer
and is due and payable at the time the (oods are entered for home
consumption as if it .ere a duty of customs under the ,ustoms
0ana(ement ActC and
?c@ in the case of a taxable importation of ser'ices6 falls 4ointly and
se'erally on the importer and the recipient of the ser'ices and is due
and payable at the time prescribed by this Act and the re(ulations.
?2@ A hotel6 or any other person responsible for the administration of condos
or other residential accommodations that form part of a pool or other
collecti'e rental arran(ement6 must re(ister in accordance .ith section 1#
and pay the tax payable under this Act in relation to the rental of such
accommodations.
?3@ Sub4ect to this Act6 a liability to pay and account for 'alue added tax
means a liability to pay and account to the ,entral e'enue A(ency.
.. Rate' o( ta).
*alue added tax imposed under section 4 on a taxable supply and a taxable
importation is char(eable at B
?a@ a 8ero percent rate on the 'alue of such taxable supplies and taxable
importations set out in the First Schedule sub4ect to such conditions
and restrictions as may be prescribed in re(ulationsC
?b@ a special rate of ten per cent on the 'alue of such taxable supplies
set out in the Second Schedule sub4ect to such conditions and
restrictions as may be prescribed in re(ulationsC and
?c@ a standard rate of fifteen per cent on the 'alue of any taxable supply
and taxable importation that is not 8ero rated or special rated.
Pa(e & 15
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/. E)empt '-pplie' and e)empt importation'.
Sub4ect to section #6 'alue added tax is not char(eable on such supplies and
importations6 called exempt supplies and exempt importations6 set out in the
Third Schedule sub4ect to such conditions and restrictions as may be prescribed
in re(ulations.
0. E)empt per'on' .
A diplomatic mission or international or(anisation may6 in relation to a
transaction in respect of .hich it is an exempt person6 claim a refund of *A%
paid on a 9ualifyin( (ood or ser'ice in accordance .ith section 56.
1. Ta)2e)cl-'i3e pricin4.
?1@ A re(istrant must B
?a@ in respect of a taxable supply6 state the price exclusi'e of 'alue
added taxC and
?b@ .here the re(istrant char(es 'alue added tax on a taxable supply6
state the tax separately on a *A% in'oice or a *A% sales receipt.
?2@ A re(istrant may6 in a mar3etin( campai(n6 state the price of a taxable
supply inclusi'e of 'alue added tax .here the re(istrant includes in such
statement the fact that *A% is included in the price.
?3@ Sub4ect to subsection ?2@ of section 236 a price char(ed by a taxable
person in respect of a taxable supply is deemed to include 'alued added
tax char(eable on the supply6 .hether or not the taxable person has
included tax in such price.
?4@ A taxable person must display the prices of (oods or ser'ices supplied by
such person in the manner prescribed in re(ulations and *A% /uidelines.
?5@ %his section does not apply to a re(istrant .ho supplies retail fuel .hich
is sold to a consumer at the pumps and a re(istrant .ho supplies such fuel
must state the price of the fuel on a per (allon basis inclusi'e of 'alue
added tax.
15. Intere't on -npaid ta) treated a' ta).
?1@ %ax payable under this Act .hich is not paid by the date on .hich it
becomes due and payable bears interest B
?a@ in respect of any outstandin( amount6 at the rate prescribed in
re(ulationsC and
?b@ .hich is reco'erable as if the interest .ere 'alue added tax due
under this Act.
Pa(e & 16
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?2@ Interest paid by a person under this Act must6 to the extent that any tax to
.hich it relates is subse9uently determined not to ha'e been due and
payable6 be refunded to the payer of such interest.
PART III AMINISTRATION
11. The #AT i3i'ion o( the 6entral Re3en-e A4enc,.
?1@ esponsibility for carryin( out the pro'isions of this Act lies .ith the
,ommissioner /eneral actin( throu(h the *alue Added %ax +i'ision of
the ,entral e'enue A(ency.
?2@ %he ,ommissioner of the *alue Added %ax +i'ision6 called the *A%
,ommissioner6 is responsible for the day to day functions and operations
of the +i'ision comprisin( B
?a@ the assessment6 le'y and collection of taxC and
?b@ the administration and enforcement of the pro'isions of this Act.
?3@ %he ,ommissioner /eneral has o'ersi(ht of the *A% +i'ision to ensure
efficient and effecti'e tax collection and the enhancement and
maximisation of 'alue added tax re'enues to the ,onsolidated -und.
12. "-nction' and po7er' o( the #AT 6ommi''ioner.
?1@ %he *A% ,ommissioner B
?a@ is responsible for the day to day operations6 and the exercise of all
po.ers and dischar(e of all functions of the *alue Added %ax
+i'ision of the ,entral e'enue A(encyC and
?b@ has direction6 super'ision and control o'er all administrati'e units6
personnel and acti'ities of the +i'ision.
?2@ Sub4ect to this Act6 the functions and po.ers of the ,ommissioner are to
B
?a@ ensure the effecti'e and efficient administration of the *A%
+i'ision in accordance .ith the pro'isions of this Act and the
re(ulationsC
?b@ assist the ,ommissioner /eneral in preparin( a national frame.or3
for the le'y and collection of 'alue added tax6 includin(
administrati'e procedures6 standards and protocolsC
?c@ ad'ise the 0inister on the information technolo(y systems6
personnel6 s3ills and other resources re9uired to ensure the optimal
functionin( of the +i'isionC
?d@ ma3e decisions or determinations .hether or not B
?i@ a person is a taxable person or a transaction is a taxable
transactionC
Pa(e & 1!
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?ii@ a taxable supply is a standard rated6 special rated6 8ero&rated
or an exempt supplyC
?iii@ a taxable importation is a standard rated6 special rated6 8ero&
rated or an exempt importationC
?i'@ a person is carryin( on a taxable acti'ityC
?'@ a taxable supply or taxable importation .as made in the
course or furtherance of a taxable acti'ityC
?'i@ input tax is attributable to the production or distribution of a
taxable supplyC
?'ii@ a taxable supply is to be treated in any particular case as a
supply of (oods or a supply of ser'icesC
?'iii@ a taxable importation is to be treated in any particular case as
an import of (oods or an import of ser'icesC
?e@ process applications for re(istrationC
?f@ process claims for input tax deductions and decide .hether a claim
is allo.able and the amount6 if any allo.ed on the claimC
?i@ .ithdra. or amend a decision6 determination6 or notice6 made or
issued by a *A% officer or by the ,ommissionerC
?4@ ad'ise the 0inister on the le'el of fees to be set in relation to
applications and forms made or re9uired6 and ser'ices performed by
the +i'ision6 under or pursuant to this ActC
?3@ coordinate6 super'ise and (i'e ad'ice on matters related to trainin(
for *A% officersC
?l@ super'ise the +i'ision7s daily operations and the performance of
*A% officers and other employeesC
?m@ annually re'ie. the performance of the +i'ision and ma3e such
chan(es to administrati'e procedures6 standards and protocols as
may be necessary or desirable to enhance performanceC
?n@ issue on behalf of the ,entral e'enue A(ency such .arnin( letters
as the ,ommissioner considers appropriate to taxable and other
persons in non&compliance .ith the pro'isions of this Act and the
re(ulationsC and
?o@ perform such other functions relatin( to the assessment6 payment
and collection of 'alue added tax as the 0inister may re9uest.
?3@ Sub4ect to this Act and the re(ulations6 the functions6 po.ers and duties of
the ,ommissioner are exercisable and may be performed by B
?a@ the ,ommissioner6 a +eputy ,ommissioner for e'enue or
Assistant ,ommissioner for e'enueC or
?b@ except .here a contrary intention appears6 a *A% officer.
Pa(e & 1#
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?4@ -or the purposes of para(raph ?b@ of subsection ?3@6 a contrary intention
appears .here the ,ommissioner is re9uired under this Act or the
re(ulations to authorise a *A% officer in .ritin( in respect of a specific
matter or purpose.
13. #AT o((icer'.
?1@ -or the purposes of this Act6 a *A% officer is a taxation officer assi(ned to
the *A% +i'ision.
?2@ %here must be appointed6 and assi(ned to the *A% +i'ision6 such taxation
officers as may be re9uired in order to ensure the efficient and effecti'e
administration of the +i'ision and execution of the functions6 po.ers and
duties of the +i'ision and the ,ommissioner under this Act and the
re(ulations.
?3@ %he ,ommissioner /eneral must issue an identity card or other means of
identification to B
?a@ a *A% officerC and
?b@ to any other person .ho the ,ommissioner /eneral authorises in
.ritin( to act under this Act on behalf of the ,entral e'enue
A(ency.
?4@ A *A% officer .hen on duty6 or an authorised person6 must al.ays carry
the identity card or other means of identification issued pursuant to
subsection ?3@ and6 .hen exercisin( any po.er under this Act6 produce it
on re9uest.
?5@ A *A% officer or authorised person in the exercise of6 or in connection
.ith6 his functions6 po.ers and duties under this Act and the re(ulations
must not B
?a@ directly or indirectly as3 for6 or ta3e B
?i@ a payment or re.ard6 pecuniary or other.ise6 .hich is not a
payment or re.ard .hich such officer or authorised person is
la.fully entitled to recei'eC
?ii@ a promise or security for a payment or re.ard referred to in
sub&para(raph ?i@C
?b@ enter into6 or ac9uiesce in6 an a(reement to do6 abstain from doin(6
permit6 conceal6 or conni'e at any act or thin( B
?i@ .hereby the *A% re'enue is or may be defraudedC or
?ii@ .hich is contrary to the pro'isions of this Act and the
re(ulations or to the proper exercise of the duty of such
officer or authorised person.
?6@ A *A% officer or authorised person must6 on ceasin( to be a *A% officer or
authorised person6 immediately surrender to the ,ommissioner /eneral
his identity card or other means of identification.
Pa(e & 1$
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1&. 6ommi''ioner 8eneral ma, appro3e in3e'tment' made prior to
re4i'tration.
?1@ %he ,ommissioner /eneral may6 on the re(istration by the *A%
,ommissioner of a person under section 1# or section 1$6 authorise the
*A% ,ommissioner to allo. a claim made by the re(istrant as prescribed
for input tax deduction in respect of in'estments B
?a@ made by the re(istrant .ithin the t.enty&four month period
immediately precedin( the re(istrationC
?b@ .hich comprise taxable supplies made to6 or taxable importations
made by6 the re(istrant B
?i@ in the course or furtherance of the taxable acti'ity carried on
by himC
?ii@ in resepct of .hich the re(istrant has paid 'alue added taxC
and
?iii@ in respect of .hich the re(istrant has submitted such
documentation in support of the claim for refund as are
prescribed by re(ulations or are appro'ed by the *A%
,ommissioner.
?2@ %he ,ommissioner /eneral may authorise the *A% ,ommissioner to
allo. a claim made pursuant to subsection ?1@6 in .hole or in part6 as the
,ommissioner /eneral determines to be appropriate in the circumstances
of a particular case.
1*. Admini'trati3e (ine' and 7arnin4 letter'.
?1@ %he ,entral e'enue A(ency may order the payment of an administrati'e
fine in any case .here it is satisfied that a person has contra'ened or
failed to comply .ith a pro'ision of B
?a@ this ActC
?b@ a re(ulation made under or pursuant to this ActC
?c@ a *A% ule made pursuant to section 16C
?2@ An order by the ,entral e'enue A(ency pursuant to subsection ?1@ may
not impose a fine exceedin( B
?a@ in the case of an indi'idual6 fifty thousand dollarsC and
?b@ in the case of a company6 partnership6 trust6 unincorporated or other
association6 one hundred fifty thousand dollars.
?3@ A contra'ention or non&compliance under this section may in accordance
.ith the re(ulations be B
?a@ classified as 'ery serious6 serious6 or minorC and
?b@ liable to imposition of a fixed fine or to a 'ariable fine.
Pa(e & 2)
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?4@ A contra'ention or non&compliance classified as minor is6 in respect of
each day or part of a day durin( .hich the act or omission constitutin( the
contra'ention or non&compliance is continued6 a separate contra'ention or
non&compliance.
?5@ %he ,entral e'enue A(ency may impose a maximum fine in relation to a
contra'ention or non&compliance B
?a@ .here committed by an indi'idual and classified as B
?i@ minor6 of t.el'e thousand fi'e hundred dollarsC
?ii@ serious6 of t.enty&fi'e thousand dollarsC
?iii@ 'ery serious6 of fifty thousand dollarsC
?b@ .here committed by a company6 partnership6 trust6 unincorporated
or other association and classified as B
?i@ minor6 of t.enty&fi'e thousand dollarsC
?ii@ serious6 of se'enty&fi'e thousand dollarsC and
?iii@ 'ery serious6 of one hundred fifty thousand dollars.
?6@ %he ,entral e'enue A(ency may6 .here the *A% ,ommissioner is
satisfied that a contra'ention or non&compliance under this Act or the
re(ulations has been committed and such contra'ention or non&
compliance constitutes an offence6 elect to proceed .ith the matter as B
?a@ a criminal offence and institute criminal proceedin(sC or
?b@ a contra'ention or non&compliance sub4ect to the imposition of an
administrati'e fine in accordance .ith this section and the
re(ulations.
?!@ %he ,entral e'enue A(ency is6 on completion of a proceedin( in the
manner elected pursuant to subsection ?6@6 precluded from proceedin( in
the other manner.
?#@ An order made by the ,entral e'enue A(ency under this section must B
?a@ be in .ritin(C
?b@ specify the B
?i@ specific contra'ention or non&compliance .hich has been
committed and its classification6 if applicableC
?ii@ amount of the fine imposedC
?iii@ time period .ithin .hich the fine must be paid in fullC and
?c@ be ser'ed on the person fined in the manner prescribed by
re(ulations.
?$@ An order under this section may be enforced in the same manner as an
order of the e'enue ,ourt.
?1)@ A person fined under this section6 upon payment .ithin the prescribed
time of the fine in full6 cannot subse9uently be prosecuted for an offence
Pa(e & 21
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in respect of the same act or omission constitutin( the contra'ention or
non&compliance to .hich the fine related.
?11@ %he ,entral e'enue A(ency may6 .here a person is in contra'ention of
or non&compliance .ith a pro'ision of this Act or the re(ulations6 issue a
.arnin( letter in the form prescribed to such person specifyin( the act or
omission (i'in( rise to the contra'ention or non&compliance and the
remedy re9uested by the *A% ,ommissioner.
?12@ A .arnin( letter under subsection ?11@ must be 3ept by the ,ommissioner
on the file of the taxable person6 or other person6 liable to pay tax.
?13@ %he *A% ,ommissioner may not ma3e an application to the e'enue
,ourt under section !5 to close the business premises of a person unless
the ,ommissioner has issued to such person a .arnin( letter in
accordance .ith subsection ?3@ of that section.
?14@ %he imposition of a fine6 or issuance of a .arnin( letter6 under this section
must be made in accordance .ith the re(ulations.
?15@ %he ,entral e'enue A(ency may6 .here the A(ency decides a fine
imposed under this section .as imposed in error6 remit all or part of such
fine and such remission may be conditional or unconditional.
1.. #AT 8-ideline'.
?1@ %he ,ommissioner /eneral of the ,entral e'enue A(ency may publish
*A% /uidelines in order to mandate6 clarify6 explain6 illustrate6 or
illuminate any procedure6 process6 or matter in respect of the
administration and enforcement of this Act and the re(ulations.
?2@ *A% /uidelines pursuant to subsection ?1@ must be published in
accordance .ith the re(ulations.
1/. Ad3ance #AT r-lin4'.
?1@ %he *A% ,ommissioner may6 on application by a person in the prescribed
form6 issue an ad'ance *A% rulin( in respect of a matter in'ol'in( the
liability of a person to pay tax in relation to a proposed supply or import
of specific (oods or ser'ices.
?2@ Sub4ect to subsection ?3@6 an ad'ance *A% rulin( by the ,ommissioner
ta3es effect in respect of the specific transaction to .hich the rulin(
relates and is 'alid for the period specified in the rulin(.
?3@ An ad'ance *A% rulin( issued by the ,ommissioner on the basis of false6
misleadin( or incorrect information pro'ided in the application for the
rulin( is 'oid.
Pa(e & 22
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PART I# RE8ISTRATION
10. Mandator, re4i'tration.
?1@ A person must apply for re(istration in accordance .ith this Part .here
such person6 in the course or furtherance of a taxable acti'ity carried on
by him6 ma3es taxable supplies or taxable importations and B
?a@ has at the end of any period of t.el'e or fe.er months obtained a
turno'er from the taxable acti'ity carried on by him in excess of the
re(istration thresholdC
?b@ at the be(innin( of any period of three hundred and sixty&fi'e days6
has reasonable (rounds to expect to obtain from the taxable acti'ity
carried on by him durin( such period a turno'er in excess of the
re(istration thresholdC or
?c@ .here such person is a promoter of public entertainment6 or a
licensee or proprietor of a place of public entertainment6 reasonably
expects .ithin any period of t.el'e or fe.er months to obtain a
turno'er from such public entertainment in excess of the
re(istration threshold.
?2@ A person must apply for re(istration in accordance .ith this Part .here
such person is B
?a@ a diplomatic mission or international or(anisation desirin( to claim
a refund under section 56C
?b@ a hotel or other person responsible for the administration of condos6
or other residential accommodations6 formin( part of a pool or other
collecti'e rental arran(ement .here the criteria referred to in
para(raphs ?a@ or ?b@ of subsection ?1@ is met in relation to the
administration of such accommodations.
?3@ A person referred to in subsection ?1@ or para(raph ?b@ of subsection ?2@
B
?a@ must apply to the *A% ,ommissioner for re(istration .ithin
fourteen days of meetin( the re9uirements specified in para(raph
?a@ or para(raph ?b@ of subsection ?1@C
?b@ in case of para(raph ?c@ of subsection ?1@6 must apply for
re(istration a minimum of forty&ei(ht hours prior to the
commencement of the public entertainment bein( promotedC and
?c@ in case of para(raph ?a@ of subsection ?2@6 must apply for
re(istration prior to ma3in( a claim for refund.
?4@ A person .ho meets the re9uirements specified in para(raphs ?a@6 ?b@ or
?c@ of subsection ?1@6 or para(raph ?b@ of subsection ?2@6 is a taxable
person .hether or not such person applies for re(istration under this
section.
Pa(e & 23
DRAFT
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?5@ %he *A% ,ommissioner may B
?a@ ma3e an assessment in accordance .ith Part *III on a person
belie'ed to be an unre(istered taxable person in order to determine
such person7s liability to be re(istered and pay taxC and
?b@ .here the assessment confirms he is a taxable person6 and he has
made no application for re(istration6 compulsorily re(ister such
person in accordance .ith subsection ?2@ of section 22.
?6@ %he ,ommissioner may6 in ma3in( an assessment pursuant to subsection
?5@6 ha'e re(ard to the 'alue of taxable supplies and taxable importations
made by another person .here both persons are B
?a@ related persons6 determined in accordance .ith criteria prescribed
by re(ulationsC or
?b@ actin( in concert in ma3in( the taxable supplies and taxable
importations.
?!@ A person is not re9uired to apply for re(istration under subsection ?1@
.here the ,ommissioner is satisfied that such person exceeded the
re(istration threshold solely as a conse9uence of the B
?a@ sale of capital (oodsC
?b@ cessation6 or substantial or permanent reduction in the si8e or scale6
of a taxable acti'ity carried on by such person.
?#@ Para(raphs ?a@ and ?b@ of subsection ?1@ apply to a person .ho is
domiciled outside %he >ahamas to the extent such person pro'ides
directly6 or throu(h an a(ent6 telecommunication ser'ices or electronic
commerce to persons for use6 en4oyment6 benefit or ad'anta(e .ithin %he
>ahamas.
?$@ 2ot.ithstandin( subsection ?1@ B
?a@ the /o'ernment is deemed to be re(istered on and from the date a
ministry6 department6 statutory body6 a(ency6 local (o'ernment
council6 or other entity of /o'ernment6 commences a taxable
acti'ityC and
?b@ a person .ho is an auctioneer must apply for re(istration on the
date such person becomes an auctioneer.
11. #ol-ntar, re4i'tration.
?1@ A person may apply for re(istration in accordance .ith this Part .here
such person ma3es taxable supplies and taxable importations in the course
or furtherance of a taxable acti'ity carried on by him and B
?a@ has in the t.el'e months immediately precedin( the application for
re(istration obtained a turno'er from the taxable acti'ity carried on
by him in a lesser amount than the re(istration thresholdC
Pa(e & 24
DRAFT
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?b@ intends to ma3e taxable supplies and taxable importations in the
course or furtherance of a taxable acti'ity to be carried on by him
and has reasonable (rounds to expect to obtain from the taxable
acti'ity carried on by him an annual turno'er in a lesser amount
than the re(istration threshold.
?2@ A person applyin( for re(istration pursuant to subsection ?1@ must satisfy
the ,ommissioner in such manner as may be prescribed that such person
B
?a@ has a fixed place of abode or a business .ithin %he >ahamas from
.hich he carries on a taxable acti'ityC
?b@ carries on or intends to carry on a taxable acti'ity in terms of
para(raphs ?a@ or ?b@ of that subsectionC
?c@ is li3ely to be entitled6 if (ranted re(istration6 to claim input tax
deductions on input tax paidC
?d@ is able and .illin( to 3eep proper records as prescribedC and
?e@ is able and .illin( to submit re(ular and reliable *A% returns in
accordance .ith this Act.
25. Re4i'tration thre'hold.
?1@ -or the purposes of this Act6 the re(istration threshold isB
?a@ in respect of para(raphs ?a@ and ?b@ of subsection ?1@ of section 1#6
and para(raphs ?a@ and ?b@ of subsection ?1@ of section 1$ B
?i@ sub4ect to sub&para(raph ?ii@6 one hundred thousand dollarsC
?ii@ .here the taxable acti'ity is the supply of hotel
accommodation or commercial property for lease6 fifty
thousand dollarsC and
?b@ in respect of para(raph ?c@ of subsection ?1@ of section 1#6 such
amount as the *A% ,ommissioner determines to be appropriate in
the circumstances of a particular case.
?2@ %he *A% ,ommissioner must determine in accordance .ith the
re(ulations .hether a taxable acti'ity meets the criteria prescribed for a
supply of hotel accommodation or commercial property for lease.
21. Application (or re4i'tration.
?1@ An application for re(istration under this Part must be made to the *A%
,ommissioner in the prescribed form and an applicant must pro'ide the
,ommissioner .ith such further information6 in .ritin(6 as the
,ommissioner may re9uire.
?2@ -or the purposes of this Act6 a taxable person .ho carries out a taxable
acti'ity in branches or di'isions is treated as a sin(le person carryin( out
Pa(e & 25
DRAFT
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the taxable acti'ity and no separate re(istration of branches or di'isions is
allo.ed.
22. 8rant o( re4i'tration.
?1@ %he *A% ,ommissioner6 on application bein( made in the prescribed form
B
?a@ must re(ister6 .ithin t.enty&one business days of receipt of the
application6 an applicant under section 1# .ho in the opinion of the
,ommissioner meets the re9uirements for re(istration under that
sectionC
?b@ may re(ister an applicant .ho has applied for re(istration pursuant
to section 1$ and .ho satisfies the ,ommissioner that he B
?i@ has a fixed place of abode or a business .ithin %he >ahamas
from .hich he carries on a taxable acti'ityC
?ii@ carries on or intends to carry on the taxable acti'ity in terms
of para(raphs ?a@ or ?b@ of that sectionC
?iii@ is li3ely to be entitled6 if (ranted re(istration6 to claim input
tax deduction under this ActC
?i'@ is able and .illin( to 3eep proper records as prescribedC and
?'@ is able and .illin( to submit re(ular and reliable *at returns
as re9uired by this ActC and
?c@ must .ithin t.enty&one business days of recei'in( an application6
inform the applicant by notice in .ritin( of the ,ommissioner7s
decision to (rant or refuse the application.
?2@ %he ,ommissioner may6 .here the ,ommissioner compulsorily re(isters
a taxable person pursuant to subsection ?4@ of section 1#6 impose an
effecti'e date of re(istration that is B
?a@ retrospecti'eC and
?b@ the earliest date on .hich the ,ommissioner reasonably determines
the person first became a taxable person under that section.
?3@ %he ,ommissioner must on re(isterin( a person pursuant to subsections
?1@ and ?2@ B
?a@ issue to each re(istrant a certificate of re(istration in the prescribed
form containin( B
?i@ a uni9ue 'alue added tax identification numberC
?ii@ the effecti'e date of the re(istrationC
?ii@ other rele'ant details of the re(istrantC and
?b@ allocate to each re(istrant a tax period commencin( on the effecti'e
date of the re(istrationC
Pa(e & 26
DRAFT
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?4@ %he effecti'e date of re(istration is6 for B
?a@ an applicant under section 1# .ho applies .ithin the prescribed
time6 or .ho applies for 'oluntary re(istration under section 1$6 the
first day of the month immediately follo.in( the date on .hich the
,ommissioner issues the re(istration certificateC
?b@ the /o'ernment6 the date a ministry6 department6 statutory body6
a(ency6 local (o'ernment council6 or other entity of /o'ernment
commences the taxable acti'ityC
?c@ an applicant .ho is an auctioneer6 the date the person became an
auctioneerC and
?d@ an applicant under section 1# .ho does not apply .ithin the
prescribed time6 such date as the ,ommissioner determines on
assessment to be appropriate.
?5@ %he ,ommissioner is deemed to ha'e made a decision refusin( the (rant
of an application .here B
?a@ the ,ommissioner fails to ser'e a notice as re9uired under
para(raph ?c@ of subsection ?1@C and
?b@ the applicant has pro'ided in .ritin( all further information
re9uired by the ,ommissioner.
?6@ A person a((rie'ed .ith a decision6 or deemed decision6 of the
,ommissioner pursuant to subsection ?1@ or subsection ?5@ may ob4ect or
appeal the decision under Part =I.
23. $nre4i'tered ta)a+le per'on remain' lia+le to pa, and acco-nt (or
#AT.
?1@ A person must6 on becomin( a taxable person6 apply .ithin the prescribed
time to the *A% ,ommissioner for re(istration under this Part.
?2@ An unre(istered taxable person B
?a@ must not collect tax or issue to any person a *A% in'oice6 *A% sales
receipt6 tax credit note or tax debit noteC
?b@ is not eli(ible to file a *A% return .ith the ,ommissionerC and
?c@ is liable to pay and account to the ,entral e'enue A(ency for
'alue added tax char(eable on all taxable supplies and taxable
importations made by him .hile unre(istered.
2&. Re4i'trant m-'t di'pla, certi(icate o( re4i'tration.
A re(istrant must at all times display a 'alid certificate of re(istration issued to
him under this Part in a conspicuous place at each location .here he carries on a
taxable acti'ity.
Pa(e & 2!
DRAFT
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2*. Notice o( chan4e o( circ-m'tance'.
?1@ A re(istrant must notify the *A% ,ommissioner in .ritin( B
?a@ .ithin t.enty&one calendar days6 of any chan(e in circumstances
that affect the particulars B
?i@ declared in the application for his re(istrationC
?ii@ other.ise furnished to the ,ommissioner in connection .ith
his re(istrationC
?iii@ appearin( in his re(istration certificateC
?b@ .ithin se'en calendar days6 of the cessation in .hole or in part of
the business comprisin( the taxable acti'ity carried on by himC
?c@ of any other chan(e or e'ent as may be prescribed.
?2@ A taxable person .ho sells or transfers a taxable acti'ity as a (oin(
concern must notify the ,ommissioner6 as prescribed in re(ulations6 a
minimum of fourteen calendar days prior to the earliest of the date B
?a@ the sale closesC
?b@ the purchaser or transferor ac9uires a le(al interest in the assets to
be ac9uiredC or
?c@ the assets of the business are transferred.
?3@ A notification under subsection ?1@ must be in the form and manner
prescribed in re(ulations and specify B
?a@ the date on .hich the re(istrant ceased to carry on all taxable
acti'ityC
?b@ .hether the re(istrant intends to carry on a taxable acti'ity .ithin
t.el'e months of the date referred to in para(raph ?a@.
2.. 6ancellation and '-'pen'ion o( re4i'tration.
?1@ %he *A% ,ommissioner must6 on receipt of a notification under para(raph
?b@ of subsection ?1@ of section 256 cancel the re(istration of the re(istrant
.ith effect from the last calendar day of the tax period durin( .hich all
taxable acti'ities of the re(istrant ceased or such other date as the
,ommissioner may determine.
?2@ %he ,ommissioner must not cancel a re(istration under subsection ?1@
.here the ,ommissioner has reasonable (rounds to belie'e the re(istrant
.ill carry on a taxable acti'ity at any time .ithin t.el'e months from the
date of cessation of the business.
?3@ Sub4ect to subsection ?4@6 the ,ommissioner may at any time cancel a
re(istration .here the ,ommissioner is satisfied that the re(istrant does
not meet or no lon(er meets the re9uirements for mandatory re(istration
under section 1# or 'oluntary re(istration under section 1$.
Pa(e & 2#
DRAFT
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?4@ %he ,ommissioner may determine a date for cancellation under
subsection ?3@ that is retrospecti'e to a date not earlier than B
?a@ the last day of the tax period durin( .hich the the taxable acti'ity
carried on by the re(istrant ceasedC or
?b@ the effecti'e date of the re(istration .here the ,ommissioner is
satisfied that the re(istration .as obtained throu(h fraud6
misrepresentation or other misconduct and the re(istrant ne'er6 in
fact6 carried on a taxable acti'ity.
?5@ Sub4ect to subsection ?6@6 a re(istrant may apply as prescribed for a
cancellation of his re(istration.
?6@ %he ,ommissioner must cancel a re(istration pursuant to an application
made in the prescribed form under subsection ?5@6 .here B
?a@ the ,ommissioner is satisfied that the re(istrant did not meet the
re(istration threshold durin( the t.el'e month period immediately
prior to the application bein( made6 or6 .ill not meet the threshold
durin( the t.el'e month period follo.in( the date of the
applicationC and
?b@ a minimum period of t.o years ha'e elapsed since the effecti'e
date of the re(istration.
?!@ %he ,ommissioner must6 .here the ,ommissioner (rants or refuses an
application to cancel a re(istration under this section6 ser'e .ithin
fourteen days of the decision a .ritten notice on the re(istrant as
prescribed by re(ulations.
?#@ A cancellation ta3es effect from the end of the tax period in .hich the
re(istration is cancelled or at such earlier date as the ,ommissioner may
determine.
?$@ Subsection ?6@ does not apply to an auctioneer6 the /o'ernment or a
promoter of public entertainment.
?1)@ A cancellation of re(istration under this section does not affect the
liability to file a *A% return and to pay tax6 or any other obli(ation or
liability of a person .hich accrued .hile such person .as a re(istrant.
?11@ A re(istrant must6 on cancellation of his re(istration6 return to the
,ommissioner the certificate of re(istration and the ,ommissioner must
upon receipt of the certificate remo'e the re(istrant7s name from the
re(ister.
?12@ %he *A% ,ommissioner may B
?a@ suspend the certificate of re(istration of a re(istrant B
?i@ .ho has failed to file a *A% return for three or more
consecuti'e tax periodsC
Pa(e & 2$
DRAFT
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?ii@ in any circumstances other than referred to in para(raph ?a@6
.here the ,ommissioner deems it appropriate for the
efficient administration of the ActC and
?b@ publish the suspension of the re(istration certificate in such manner
as the ,ommissioner may determine.
?13@ A re(istrant .hose certificate of re(istration is suspended by the *A%
,ommissioner remains liable for *A% payable on taxable supplies made
durin( the suspension period.
?14@ A person a((rie'ed by a decision of the ,ommissioner in respect of an
application made under this section may ob4ect or appeal the decision
under Part =I.
2/. Re4i'ter open to the p-+lic.
?1@ %he *A% ,ommissioner must establish and maintain as prescribed by
re(ulations an up to date re(ister containin( the details of all re(istrants.
?2@ %he re(ister shall be open to the public at all reasonable hours and
a'ailable in electronic media.
?3@ A person may6 upon payment of the prescribed fee6 re9uire an extract or
copy of an entry from the re(ister to be certified by or on behalf of the
,ommissioner.
?4@ %he ,ommissioner may6 .here satisfied a certificate has been lost6
mutilated or destroyed6 issue to a re(istrant on .ritten re9uest a certified
copy of a re(istration certificate upon payment of such fees as may be
prescribed.
?5@ An extract or copy of an entry from the re(ister6 certified by or on behalf
of the ,ommissioner6 is in all le(al proceedin(s recei'able in e'idence as
proof B
?a@ of the re(istration of a personC and
?b@ that a certificate of re(istration .as issued to such person.
?6@ %he *A% ,ommissioner must publish annually6 on the 1
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day of Aanuary
in each year6 by notice in the /a8ette or in such other manner as may be
prescribed6 a list of all re(istrants.
PART # S$PPLIES O" 8OOS AN SER#I6ES
20. R-le' relatin4 to a '-ppl, o( 4ood'.
?1@ Sub4ect to this Act and the re(ulations6 a supply of (oods includes a B
?a@ sale of (oodsC
Pa(e & 3)
DRAFT
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?b@ (rant of the use of 6 or ri(ht to use6 (oods under a rental a(reement6
credit a(reement6 frei(ht contract6 a(reement for charter6 or other
a(reementC
?c@ transfer or pro'ision of utility (oodsC
?d@ supply of (oods for a consideration in (oods or ser'icesC
?e@ a transfer of (oods on consi(nmentC
?f@ a supply of ser'ices incidental to a supply of (oods.
?2@ %he disposition of a taxable acti'ity as a (oin( concern6 or of such part of
the acti'ity that is capable of separate operation6 is a taxable supply of
(oods.
?3@ -or the purposes of subsection ?2@6 a taxable acti'ity or its rele'ant part is
disposed of as a (oin( concern .here B
?a@ all the (oods and ser'ices necessary for the continued operation of
the acti'ity6 or its rele'ant part6 are supplied to the transfereeC and
?b@ the transferor carries on the acti'ity6 or its rele'ant part6 up to the
time of its transfer to the transferee.
?4@ %he transfer of (oods to a person actin( in a representati'e capacity to the
transferor is not a supply of (oods under this Act.
?5@ A supply of (oods by auction is6 if not an exempt supply6 a taxable supply.
21. R-le' relatin4 to a '-ppl, o( 'er3ice'.
?1@ Sub4ect to this Act and the re(ulations6 a supply of ser'ices is any thin(
done .hich is not a supply of (oods or money includin( B
?a@ ma3in( a'ailable any facility or ad'anta(eC
?b@ refrainin( from6 or toleratin(6 an acti'ityC or
?c@ the (rant6 assi(nment6 cessation6 or surrender of a ri(ht.
?2@ A supply of ser'ices for a consideration in (oods or ser'ices is a supply of
ser'ices.
?3@ A supply of (oods incidental to a supply of ser'ices is part of the supply
of ser'ices.
35. Treatment o( '-pplie' o( 4ood' and 'er3ice' in 'pecial ca'e'.
?1@ %he application to a different use of (oods and ser'ices ac9uired by a
taxable person for use in a taxable acti'ity carried on by such person6
includin( the pro'ision of such (oods and ser'ices to an employee for
personal use6 is a taxable supply.
?2@ A repossession of (oods under a credit a(reement B
?a@ is a supply of such (oods by the debtor under the a(reement to the
person exercisin( the ri(ht of repossessionC and
Pa(e & 31
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?b@ .here the debtor is a re(istrant6 is a taxable supply unless such
(oods did not form part of the assets held or used by the debtor in
connection .ith the taxable acti'ity carried on by him.
?3@ %he termination or cancellation of a lay&a.ay a(reement is a supply of
ser'ices by the seller .here the seller B
?a@ retains an amount paid by the purchaserC or
?b@ reco'ers an amount the purchaser o.es under the a(reement.
?4@ Sub4ect to subsection ?5@6 a ri(ht to recei'e (oods or ser'ices B
?a@ for a monetary 'alue stated on a to3en6 other than a posta(e stamp
under the Post 5ffice Act ?Ch. 300@C and
?b@ (ranted for a consideration in money6
is not a supply of such (oods or ser'ices6 except to the extent that the
consideration paid for the to3en exceeds the monetary 'alue stated on the
to3en.
?5@ Subsection ?4@ does not apply to a B
?a@ phone cardC
?b@ prepayment on a cellular phoneC or
?c@ similar scheme of ad'ance payment for the supply of (oods or the
renderin( of ser'ices.
?6@ A re(istrant is treated B
?a@ .here his re(istration is cancelled pursuant to section 3)C and
?b@ .here an input tax deduction has been claimed .ith respect to the
(oods and ser'ices on hand on the date of cancellation6
to ha'e made a taxable supply of all (oods and ser'ices on hand at the
date of cancellation6 includin( capital (oods and intellectual property.
?!@ "ach part of a taxable supply is treated as a separate supply .here B
?a@ the supply is liable to tax at t.o different positi'e rates6 or a
positi'e rate and a 8ero rate6 or the supply is also an exempt supplyC
and
?b@ each part of the supply is reasonably capable of bein( supplied
separately.
?#@ A 8ero rated supply by a re(istrant supplier to a re(istrant recipient of the
.hole or part of a taxable acti'ity as a (oin( concern is treated as a self&
supply by the re(istrant recipient6 and char(eable to tax6 to the extent that
the (oods or ser'ices comprisin( the taxable acti'ity .ere ac9uired for a
purpose B
?a@ other than consumption6 use or supply in the course of ma3in(
taxable suppliesC or
Pa(e & 32
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?b@ referred to in para(raph ?a@ but such purpose comprises less than
ten per cent of the total taxable acti'ity ac9uired by the re(istrant
recipient.
?$@ %he con'ersion of a condo or other residential property comprisin( a
commercial rental establishment to a d.ellin( is a taxable supply unless
exempted from *A% in accordance .ith the re9uirements set out in the
Third Schedule and the re(ulations.
?1)@ A supply by an a(ent for a principal is a supply by the principal and a
supply to an a(ent for a principal is a supply to the principal except .here
B
?a@ ser'ices are supplied by the a(ent to the a(ent7s o.n principalC or
?b@ the principal is a non&resident.
?11@ A supply by a taxable person that is not allo.able for a claim to input tax
deduction6 includin( an exempt supply6 is not a taxable supply.
?12@ 2ot.ithstandin( any pro'ision of this section6 the 0inister may ma3e
re(ulations determinin( .hether a transaction constitutes a taxable supply
under this section and prescribin( the specific circumstances in .hich B
?a@ a supply of (oods6 or a cate(ory of (oods6 is to be treated as a
supply of ser'icesC
?b@ a supply of ser'ices6 or a cate(ory of ser'ices6 is to be treated as a
supply of (oodsC
?c@ a mixed supply of (oods and ser'ices is to be treated as a supply of
(oods or a supply of ser'icesC and
?d@ an importation of (oods incidental to a supply of ser'ices is to be
treated as a supply of ser'ices.
31. R-le' relatin4 to time o( '-ppl,.
?1@ Sub4ect to this Act and the re(ulations6 a supply of (oods or ser'ices ta3es
place on the first to occur of the follo.in( B
?a@ an issue by the supplier of an in'oice for the supplyC
?b@ payment6 in .hole or in part6 for the supply is recei'ed by the
supplierC
?c@ the (oods are deli'ered or made a'ailable to the recipientC or
?d@ completion of performance of the ser'ices.
?2@ A supply of (oods under a credit a(reement occurs on the date of
commencement of the a(reement.
?3@ A supply of (oods pursuant to a lay&a.ay a(reement occurs .hen the
(oods are deli'ered to the purchaser.
?4@ A taxable supply applied to a different use by a taxable person occurs
.hen the (oods or ser'ices are applied to a different use.
Pa(e & 33
DRAFT
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?5@ A supply of (oods by a debtor6 .here (oods are repossessed under a credit
a(reement6 occurs B
?a@ .hen the (oods are repossessed by the creditorC or
?b@ the day after the last day of any period durin( .hich the debtor
may6 under any la.6 be reinstated in his ri(hts and obli(ations under
the credit a(reement.
?6@ A supply of ser'ices6 .here a lay&a.ay a(reement terminates or is
cancelled6 occurs .hen the seller B
?a@ obtains the ri(ht to retain an amount paid by the purchaser under
the a(reementC or
?b@ reco'ers an amount o.in( by the purchaser under the a(reement.
?!@ A supply for consideration in money recei'ed by the supplier by means of
a machine6 meter or other de'ice operated by coin6 note6 or to3en occurs at
the time the coin6 note or to3en is remo'ed from the machine6 meter or
other de'ice by or on behalf of the supplier.
?#@ A supply of (oods or ser'ices6 under a rental or other a(reement pro'idin(
for periodic payments6 is treated as successi'ely supplied for successi'e
parts of the period of the a(reement and each successi'e supply occurs
.hen a payment becomes due or is recei'ed6 .hiche'er is the earlier.
?$@ A supply occurs6 to the extent the issuance of a to3en constitutes a supply6
.hen such to3en is issued.
?1)@ A self&supply of (oods or ser'ices6 pursuant to subsection ?#@ of section
3)6 by the re(istrant recipient of a taxable acti'ity occurs on the
disposition of the .hole or part of the taxable acti'ity to .hich the self&
supply relates.
?11@ A supply under a scheme of ad'ance payment occurs .hen a phone card6
cellular phone prepayment or other form of ad'ance payment is supplied
or made.
?12@ A supply of ser'ices on the forfeit of a deposit6 other than a deposit on a
returnable container6 occurs .hen the deposit is forfeited.
?13@ A supply of (oods or ser'ices on cancellation of a person7s re(istration
under this Act occurs at the time the re(istration is cancelled.
?14@ A supply of (oods by transfer on consi(nment occurs .hen the (oods are
transferred to the consi(nee.
?15@ A supply of (oods under an a(reement for hire&purchase6 or under an
arran(ement .hereby the recipient has an option to return the (oods to the
supplier6 ta3es place .hen the (oods are made a'ailable to the recipientC
?16@ A supply of utility (oods6 or construction (oods or ser'ices6 under an
a(reement pro'idin( for payments in instalments or periodically is treated
as successi'ely supplied for each period to .hich a payment for the (oods
Pa(e & 34
DRAFT
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or ser'ices relates and each successi'e supply occurs .hen a payment
becomes due6 is recei'ed6 or an in'oice relatin( only to such payment is
issued6 .hiche'er is the earliest to occur.
?1!@ Dhere a contract for a taxable supply pro'ides for retention by the
recipient of part of the purchase price pendin( satisfactory completion of
the .hole or part of the contract6 *A% becomes payable on the part of the
purchase price so retained on the earlier to occur of the follo.in( e'ents
B
?a@ payment of the retained part of the purchase price becomes due to
the supplierC or
?b@ payment of the retained part of the purchase price is recei'ed by the
supplier.
?1#@ A taxable supply made under an a(reement6 other than a hire&purchase
a(reement6 that is appropriated for the use of some person other than the
purchaser under the terms of the a(reement in circumstances .here the
total consideration is not determined at the time of appropriation is
deemed to ha'e ta3en place on the first to occur of the follo.in( e'ents B
?a@ payment of the .hole or part of the consideration for the supply
becomes due to the supplierC
?b@ payment of the .hole or part of the consideration for the supply is
recei'ed by the supplierC or
?c@ an issue by the supplier of a *A% in'oice for the supplyC
?1$@ %he time of a supply of (oods or ser'ices for .hich payment is pro'ided
by debit card occurs .hen the card is s.iped6 or the supplier other.ise
accepts a specified amount6 for the (oods pro'ided or ser'ices rendered
a(ainst the funds a'ailable on the card.
32. R-le' relatin4 to place o( '-ppl,.
?1@ Sub4ect to this Act and the re(ulations6 a supply of (oods ta3es place B
?a@ .here the (oods are deli'ered or made a'ailable by the supplierC or
?b@ in a case in'ol'in( transportation of the (oods by the supplier6 at
the site .here the (oods are located .hen such transportation
commences.
?2@ A supply of utility (oods ta3es place .here the supply is recei'ed.
?3@ Sub4ect to this Act and the re(ulations6 a supply of ser'ices ta3es place at
the location of the place of business of the supplier .ho ma3es the supply.
?4@ A supply of ser'ices6 other than a supply referred to in section 336 ta3es
place at the location .here the ser'ice is physically performed in the case
of ser'ices B
?a@ comprisin( cultural6 artistic6 sportin(6 educational6 or similar
acti'itiesC or
Pa(e & 35
DRAFT
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?b@ connected .ith tan(ible personal property.
?5@ A supply of ser'ices connected .ith real property6 other than a supply
referred to in section 336 ta3es place .here the property is located.
?6@ A supply of ser'ices of or incidental to transport6 other than a supply
referred to in section 336 ta3es place .here the transport occurs.
?!@ Any supply of a 3ind not referred to in this section6 or section 336 is
deemed to ta3e place .ithin %he >ahamas.
33. Treatment o( place o( '-ppl, in 'pecial ca'e'.
?1@ Sub4ect to subsection ?2@6 a supply of (oods or ser'ices ta3es place at the
location .here the recipient of the supply uses or obtains the benefit or
ad'anta(e of the (oods or ser'ices and such (oods or ser'ices comprise
B
?a@ a transfer or assi(nment of a copyri(ht6 patent6 licence6 trademar36
or similar ri(htC
?b@ the ser'ices of a consultant6 en(ineer6 la.yer6 architect6 accountant6
person processin( data or supplyin( information6 or any similar
ser'icesC
?c@ an ad'ertisin( ser'iceC
?d@ the supply of personnelC
?e@ the ser'ice of an a(ent in procurin( for a principal a ser'ice referred
to in this subsectionC
?f@ the leasin( of tan(ible personal property6 other than transport
propertyC
?(@ the supply of (oods 'ia electronic commerce and the supply of
internet access or similar ser'icesC or
?h@ the obli(ation to refrain from pursuin( or carryin( on a taxable
acti'ity or exercisin( a ri(ht fallin( .ithin para(raph ?a@ to ?(@.
?2@ A supply of (oods or ser'ices referred to in para(raphs ?a@ throu(h ?h@ of
subsection ?1@ is deemed to ta3e place .ithin6 and treated as an export
from6 %he >ahamas .hen such (oods or ser'ices are supplied B
?a@ from a place of business in %he >ahamasC and
?b@ to a recipient .ho uses or obtains the benefit or ad'anta(e of the
supply at a location outside %he >ahamas.
3&. 6alc-lation o( the 3al-e o( a ta)a+le '-ppl,.
?1@ Sub4ect to this Act and the re(ulations B
?a@ the 'alue of a taxable supply is the total of the consideration for the
supplyC and
Pa(e & 36
DRAFT
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?b@ 'alue added tax is excluded from the calculation of the
consideration.
?2@ %he 'alue of a supply is6 .here a portion of the price of such supply
represents *A% that is not accounted for separately6 the price reduced by
an amount e9ual to the *A% fraction multiplied by such price as
determined in accordance .ith the re(ulations.
3*. 6alc-lation o( the con'ideration (or a ta)a+le '-ppl,.
?1@ Sub4ect to subsection ?2@6 the consideration for a taxable supply is the total
amount in money or money7s .orth paid or payable for the supply less the
amount of any price discounts or rebates allo.ed and accounted for at the
time of the supply.
?2@ -or the purposes of subsection ?1@ B
?a@ the total amount paid or payable for a supply includes B
?i@ an amount paid or payable for the supply by any person6
directly or indirectlyC
?ii@ a deposit on a returnable containerC
?iii@ any duties6 le'ies6 fees6 char(es6 and taxes ?other than *A%@
paid or payable on6 or by reason of6 the supplyC and
?b@ a price discount or rebate does not include B
?i@ a cash payment made by a person as an unconditional (ift to
an appro'ed charitable or(anisationC
?ii@ a deposit (i'en in connection .ith the supply6 other than a
deposit on a returnable container6 unless and until the
supplier applies the deposit as consideration for the supply or
the deposit is forfeited.
3.. R-le' relatin4 to 3al-e o( a ta)a+le '-ppl,.
?1@ %he 'alue of a taxable supply is the fair mar3et 'alue of the supply .here
B
?a@ a taxable person ma3es the supply for no consideration or a
consideration less than its fair mar3et 'alueC and
?b@ the taxable person and the recipient of the supply are related
persons.
?2@ %he 'alue of a supply6 .here a taxable person ma3es a taxable supply
throu(h the application to a different use of (oods or ser'ices ac9uired in
the course or furtherance of a taxable acti'ity6 is the lesser of B
?a@ the consideration paid or payable by the taxable person for such
(oods or ser'icesC and
?b@ the fair mar3et 'alue of the supply of such (oods or ser'ices.
Pa(e & 3!
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?3@ %he 'alue of a supply referred to in subsection ?2@6 .here the taxable
person applies only a part of the (oods and ser'ices to a different use6 is
determined in the manner prescribed in re(ulations.
?4@ %he 'alue of a supply of (oods under a credit a(reement is the cash 'alue
of the supply.
?5@ %he 'alue of a supply6 .here a debtor ma3es a supply of (oods as a result
of a repossession of the (oods by the creditor under a credit a(reement6 is
an amount e9ual to the balance of the cash 'alue of the supply o.in( to
the creditor at the time of the supply by the debtor.
?6@ %he balance of the cash 'alue of a supply referred to in subsection ?5@ is
determined in the manner prescribed in re(ulations.
?!@ %he 'alue of a supply of ser'ices by a seller as a result of the cancellation
or termination of a lay&a.ay a(reement is an amount e9ual to the amount
B
?a@ paid by the purchaser and retained by the sellerC or
?b@ o.in( by the purchaser and reco'erable by the seller.
?#@ %he 'alue of a supply made throu(h the issue of a to3en is an amount
e9ual to the amount by .hich the money paid for the issue exceeds the
monetary 'alue stated on the to3en.
?$@ A supplier of (oods or ser'ices must B
?a@ .here the holder of a to3en surrenders such to3en to the supplier in
return for a price discount on a taxable supplyC
?b@ .here the to3en .as issued for no consideration by a taxable person
.ho is not the supplier to .hom it is surrenderedC and
?c@ .here the monetary 'alue stated on the to3en is inclusi'e of *A%6
include in the 'alue of the taxable supply made to the holder the monetary
'alue stated on the to3en less the amount attributable to *A%.
?1)@ %he 'alue of a taxable supply is6 .here the supply is not the only matter to
.hich the consideration for the supply relates6 such part of the
consideration as is attributable to the taxable supply.
?11@ %he 'alue of a self&supply6 referred to in subsection ?#@ of section 3) and
subsection ?1)@ of section 316 is the consideration for the ac9uisition of
the taxable acti'ity less the amount of such consideration attributable to
the intended use or application of the taxable acti'ity for ma3in( taxable
supplies.
?12@ %he 'alue of a taxable supply made throu(h a scheme of ad'ance payment
is the face 'alue of the phone card6 (ift card6 or other 'oucher supplied.
?13@ %he 'alue of a taxable supply on a cancellation of re(istration6 referred to
in subsection ?6@ of section 3)6 is e9ual to B
Pa(e & 3#
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?a@ sub4ect to para(raph ?b@6 the fair mar3et 'alue of the (oods or
ser'ices deemed to be suppliedC and
?b@ in the case of capital (oods6 such amount as may be determined in
the manner prescribed in re(ulations.
?14@ %he 'alue of a taxable supply6 not referred to in this Part6 is as may be
prescribed in re(ulations.
?15@ -or the purposes of this Part B
?a@ the fair mar3et 'alue in relation to a taxable supply is determined in
accordance .ith the re(ulationsC and
?b@ the cash 'alue in relation to a supply of (oods under a credit
a(reement is determined in accordance .ith the re(ulations.
3/. 6alc-lation o( the 3al-e o( a hotel accommodation or to-r pac9a4e.
2ot.ithstandin( section 366 the 'alue of a taxable supply by a taxable person of
ser'ices comprisin( a hotel accommodation or tour pac3a(e B
?a@ arran(ed by a tra'el a(ent resident outside %he >ahamas .ho is not
a taxable personC or
?b@ arran(ed by a tour operator resident outside %he >ahamas .ho is
not a taxable person6
is the consideration char(ed by the taxable person includin( the commission or
fee paid to and in respect of the ser'ices supplied by the tra'el a(ent or tour
operator resident outside %he >ahamas.
PART #I IMPORTS O" 8OOS AN SER#I6ES
30. Time o( import o( 4ood' and 'er3ice'.
Sub4ect to this Act and the re(ulations B
?a@ an importation of (oods occurs at the time the (oods are entered for
home consumption in accordance .ith the ,ustoms 0ana(ement
ActC
?b@ the time of import of a 'ehicle for a farm .hich is bonded for
,ustoms purposes is the time .hen the 'ehicle enters bond for
purposes of the ,ustoms 0ana(ement ActC and
?c@ an importation of ser'ices occurs at the time a supply of such
ser'ices occurs under Part *.
31. Mi)ed import'.
?1@ Ser'ices incidental to an importation of (oods is part of the importation of
(oodsC
Pa(e & 3$
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?2@ An importation of (oods incidental to an importation of ser'ices is both an
importation of ser'ices and an importation of (oods.
&5. 6alc-lation o( the 3al-e o( a ta)a+le importation.
Sub4ect to this Act and the re(ulations B
?a@ the 'alue of a taxable importation is the total of the consideration
for the importC and
?b@ 'alue added tax is excluded from the calculation of the
consideration.
&1. 6alc-lation o( the con'ideration (or a ta)a+le importation.
?1@ %he consideration for a taxable importation of (oods is an amount e9ual to
the total of the B
?a@ customs 'alue of the (oods for the purposes of customs duty under
the ,ustoms 0ana(ement ActC
?b@ cost of insurance and frei(ht .here not included in the customs
'alue under para(raph ?a@C
?c@ amount of any customs duty6 excise tax6 en'ironmental le'y or
surchar(e6 or any other fiscal char(e or tax ?other than *A%@
payable on the importation of the (oodsC and
?d@ amount of any customs ser'ice char(e payable on the importation
of the (oods.
?2@ %he consideration for a taxable importation of ser'ices is the total amount
in money or money7s .orth paid or payable for the import less the amount
of any price discounts or rebates allo.ed and accounted for at the time of
the import B
?3@ -or the purposes of subsection ?2@ B
?a@ the total amount paid or payable for a taxable importation of
ser'ices includes B
?i@ an amount paid or payable for the import by any person6
directly or indirectlyC
?ii@ any duties6 le'ies6 fees6 char(es6 and taxes ?other than *A%@
paid or payable on6 or by reason of6 the importC and
?b@ a price discount or rebate does not include B
?i@ a cash payment made by a person as an unconditional (ift to
an appro'ed charitable or(anisationC
?ii@ a deposit (i'en in connection .ith the import6 unless and
until the deposit is applied as consideration for the import or
the deposit is forfeited.
Pa(e & 4)
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&2. R-le' relatin4 to 3al-e o( a ta)a+le importation.
%he 'alue of a taxable importation of ser'ices is the fair mar3et 'alue6
determined in accordance .ith the re(ulations6 of the import .here B
?a@ a person ma3es an importation of ser'ices for no consideration or
for a consideration less than the fair mar3et 'alue of such importC
and
?b@ the supplier of the ser'ices and the recipient are related persons.
&3. Pa,ment o( ta) (or a ta)a+le importation o( 4ood'.
?1@ %he ,omptroller of ,ustoms B
?a@ must on behalf of the ,ommissioner /eneral of the ,entral
e'enue A(ency collect6 at the time of import6 'alue added tax due
under this Act on a taxable importation of (oods and B
?i@ record the name and the taxpayer identification number6 if
any6 of the importerC
?ii@ retain copies of the import declaration and the in'oice 'alues
in respect of the importC and
?b@ may dele(ate in .ritin( to the Postmaster /eneral the performance
on his behalf of specified functions in respect of taxable
importations of (oods made throu(h the postal ser'ices.
?2@ %he importer of a taxable importation of (oods must6 on entry of the
(oods B
?a@ submit an import declaration to the ,omptroller of ,ustomsC and
?b@ pay the *A% due on the import.
?3@ An import declaration under this section must B
?a@ be in the form prescribed in re(ulationsC
?b@ include the information necessary to calculate the *A% payable in
respect of the importC and
?c@ be submitted in the manner prescribed by re(ulations or appro'ed
by the ,omptroller of ,ustoms.
?4@ %he pro'isions of the ,ustoms 0ana(ement Act shall6 except .here a
contrary intention appears in this Act or the re(ulations6 apply muttis
mutndis to a char(e of 'alue added tax on a taxable importation of (oods
as if the 'alue added tax char(ed .ere a duty of customs under the
,ustoms 0ana(ement Act.
?5@ Pursuant to subsection ?4@6 the ,omptroller of ,ustoms may exercise any
po.er conferred on the ,omptroller of ,ustoms by the ,ustoms
0ana(ement Act or any other customs le(islation as if the reference to
customs duty in such le(islation included a reference to 'alue added tax
char(eable on taxable importations of (oods under this Act.
Pa(e & 41
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&&. Pa,ment o( ta) (or a ta)a+le importation o( 'er3ice'.
?1@ %he importer and recipient of a taxable importation of ser'ices are6 .here
they are different persons6 4ointly and se'erally liable for payment of *A%
in respect of such taxable importation of ser'ices.
?2@ %he importer or recipient of a taxable importation of ser'ices must upon
completion of the ser'ices or on entry of the person or persons contracted
to perform the ser'ices B
?a@ submit an import declaration to the *A% ,ommissionerC and
?b@ pay the *A% due on the import B
?i@ .here the recipient is not a taxable person6 .ithin se'en
calendar days of the importC
?i@ .here the recipient is an unre(istered taxable person6 on the
date stated in the notice of assessmentC and
?iii@ .here the recipient is a re(istrant6 .ithin t.enty&one
calendar days after the tax period in .hich the ser'ices .ere
imported.
?3@ An import declaration under this section must B
?a@ be in the form prescribed in re(ulationsC
?b@ include the information necessary to calculate the *A% payable in
respect of the importC and
?c@ be submitted in the manner prescribed by re(ulations or the *A%
,ommissioner.
?4@ %ax is payable under this section not.ithstandin( that the B
?a@ recipient of a supply of ser'ices is a re(istrant6 if the importation of
such ser'ices is not for use in ma3in( taxable suppliesC or
?b@ recipient of a supply of ser'ices is a not a taxable person or a
re(istrant6 .hether because such recipient is not en(a(ed in ma3in(
taxable supplies or does not meet the re(istration threshold.
?5@ -or purposes of subsection ?4@6 a local branch or other affiliate of a non&
resident branch or home office is a separate person from such non&resident
branch or home office.
PART #II 2 6AL6$LATION O" TA% PAYA!LE !Y TA%A!LE
AN OT:ER PERSONS
&*. Ta) pa,a+le +, re4i'trant'.
?1@ *alue added tax is payable by a re(istrant in respect of each tax period and
is calculated by B
Pa(e & 42
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?a@ applyin( the rate of tax char(eable on each taxable supply made by
the re(istrant for the tax period6 and ma3in( such post&supply and
other ad4ustments as may be re9uired6 to determine the total amount
of output tax payable by the re(istrantC
?b@ determinin( the amount of input tax paid by the re(istrant durin(
the tax period in respect of taxable supplies recei'ed by the
re(istrant and the input tax deduction6 if any6 allo.ed to the
re(istrant for the period in respect of such suppliesC
?c@ applyin( the rate of tax char(eable on each taxable importation
made by the re(istrant durin( the tax period to determine the
amount of tax paid or payable for the period and the input tax
deduction6 if any6 allo.ed to the re(istrant in respect of such
importationsC and
?d@ sub4ect to section 536 deductin( from the total amount of output tax
payable under para(raph ?a@ the total amount of input tax
deductions allo.ed under para(raphs ?b@ and ?c@.
?2@ %he tax period applicable to a re(istrant under this Act is one calendar
month.
&.. #AT ret-rn.
?1@ A re(istrant must B
?a@ file .ith the *A% ,ommissioner a *A% return in the prescribed
form .ithin t.enty&one days after the end of each tax period6
.hether or not tax is payable by the re(istrant in respect of the
periodC
?b@ pay the tax due B
?i@ in accordance .ith the *A% return by the end of the t.enty&
one day period .ithin .hich the re(istrant is re9uired to file
the returnC and
?ii@ in a notice of assessment issued pursuant to para(raph ?5@6 by
the date specified in the notice of assessment.
?2@ A *A% return must B
?a@ specify the particulars necessary to calculate the tax payable by the
re(istrant for the tax period to .hich the return relatesC
?b@ be filed in the manner and in the form prescribed in re(ulations.
?3@ %he *A% ,ommissioner must B
?a@ e'aluate each *A% return filed by a re(istrantC
?b@ to the ,ommissioner7s satisfaction6 determine the reasonableness
and accuracy of the returnC
?c@ .here the ,ommissioner considers it necessary6 re9uest further and
better particulars from a re(istrantC and
Pa(e & 43
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?d@ based on the ,ommissioner7s e'aluation pursuant to para(raphs ?a@
throu(h ?c@6 ma3e a decision in accordance .ith subsection ?4@.
?4@ A decision by the *A% ,ommissioner pursuant to para(raph ?d@ of
subsection ?3@ confirms the ,ommissioner7s e'aluation B
?a@ that the amount of tax represented by the re(istrant in the *A%
return as payable for the tax period is the correct amount of tax due
and payable by the re(istrant by the due date for filin( of the returnC
or
?b@ that the return filed by the re(istrant is unreasonable or inaccurate
and does not6 to the satisfaction of the ,ommissioner6 represent the
correct amount of tax due and payable by the re(istrant for the tax
period.
?5@ %he *A% ,ommissioner must6 .here the ,ommissioner ma3es a decision
pursuant to para(raph ?b@ of subsection ?4@ B
?a@ ma3e or cause to be made pursuant to para(raph ?b@ of subsection
?1@ of section 5! an assessment of the taxable acti'ity carried on by
the re(istrantC and
?b@ ser'e a notice of assessment on the re(istrant in accordance .ith
subsection ?5@ of section 5!.
?6@ A re(istrant a((rie'ed by the ,ommissioner7s decision under subsection
?4@ may ob4ect or appeal under Part =I.
?!@ A re(istrant .ho6 in an exceptional case and .ith (ood cause6 is unable to
file a *A% return .ithin t.enty&one calendar days after the end of the
re(istrant7s tax period may apply in .ritin( as prescribed to the *A%
,ommissioner for an extension of the period .ithin .hich to file the
return.
?#@ %he *A% ,ommissioner may6 .here the ,ommissioner is satisfied in an
application made pursuant to subsection ?!@ that the case is exceptional
and (ood cause has been sho.n6 (rant the re(istrant an extension of time
includin( the .ai'er of a fine.
?$@ %he (rant of an extension of time by the ,ommissioner under subsection
?#@ does not alter the due date for payment of 'alue added tax or the
interest payable in respect of such tax.
?1)@ A re(istrant a((rie'ed .ith a decision made by the ,ommissioner
pursuant to subsection ?#@ may ob4ect or appeal the decision under Part
=I.
?11@ A re(istrant .ho has filed a *A% return in accordance .ith this section
may apply in .ritin( to the ,ommissioner as prescribed6 .ithin one year
after the date the return .as filed6 to 'ary such return and the
,ommissioner may6 in accordance .ith criteria prescribed in re(ulations6
permit the re(istrant to 'ary the return.
Pa(e & 44
DRAFT
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&/. Ta) pa,a+le +, -nre4i'tered ta)a+le per'on.
?1@ *alue added tax is payable by an unre(istered taxable person in respect of
a rele'ant period prior to his becomin( re(istered in accordance .ith the
assessment made by the *A% ,ommissioner pursuant to Part *III.
?2@ Sub4ect to section 4# and to subsection ?3@6 the *A% ,ommissioner may6
in ma3in( an assessment of prior tax liability for the purpose of
re(isterin( a taxable person .ho has applied for re(istration outside of the
time period re9uired under section 1#6 allo. a claim for input tax
deduction on input tax paid .here B
?a@ the taxable supply or taxable importation to .hich a claim relates
occurred no more than three months prior to the date of re(istrationC
?b@ the (oods are on hand6 or the ser'ices ha'e not yet been performed6
at the date of re(istrationC and
?c@ such person7s records and accounts in relation to the supply or
import are acceptable to the ,ommissioner.
?3@ A claim for input tax deduction pursuant to subsection ?2@ is allo.able
only .here the taxable person pays the total amount of tax due and
payable under the assessment prior to bein( re(istered by the
,ommissioner.
?4@ An unre(istered taxable person must pay the tax assessed under this
section by the due date stated in the notice of assessment.
&0. Ta) pa,a+le +, a-ctioneer.
?1@ An auctioneer6 .here the auctioneer ma3es a taxable supply6 must add the
output tax char(eable on the supply to B
?a@ the amount of a successful bidC or
?b@ in the case of a sale out&of&hand6 the purchase price.
?2@ An auctioneer under subsection ?1@ B
?a@ must include the output tax in the total cost or price char(ed to the
bidder or purchaserC and
?b@ is liable to account and pay for output tax .hether or not it is
included in the total cost or price char(ed to the bidder or purchaser.
&1. R-le' relatin4 to a claim (or inp-t ta) ded-ction.
?1@ A claim for input tax deduction for input tax paid or payable by a taxable
person is not allo.able .here B
?a@ the taxable supply or taxable importation to .hich the claim relates
.as not used6 or is not intended for use6 in the course or furtherance
of a taxable acti'ity carried on by the claimantC
?b@ the supply or import to .hich the claim relates B
Pa(e & 45
DRAFT
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?i@ is an exempt supply or an exempt importationC
?ii@ is a taxable supply .hich .as directly used in6 or is directly
allocable to6 the production of an exempt supplyC
?c@ input tax payable on the importation to .hich the claim relates has
not been paidC
?d@ a *A% in'oice or tax debit or tax credit note as prescribed by this
Act6 or such other document as may be appro'ed by the
,ommissioner6 in respect of a taxable supply to .hich a claim
relates B
?i@ is not in the possession of a re(istrant6 and a'ailable for
inspection by the ,ommissioner6 at the time the re(istrant
files a *A% return for the tax period in .hich the supply
occurredC
?ii@ is not pro'ided by an unre(istered taxable person at the time
the *A% ,ommissioner ma3es an assessment under Part *IIIC
?e@ an import declaration6 or other prescribed or appro'ed document6 in
respect of a taxable importation B
?i@ is not in the possession of a re(istrant6 and a'ailable for
inspection by the ,ommissioner6 at the time the re(istrant
files a *A% return in respect of the taxable importationC
?ii@ is not pro'ided by an unre(istered taxable person at the time
the *A% ,ommissioner ma3es an assessment under Part *IIIC
?f@ the taxable supply or taxable importation to .hich the claim relates
is a passen(er 'ehicle and the claimant B
?i@ does not carry on a taxable acti'ity dealin( in6 or in'ol'in(
the hirin( of6 or pro'idin( transportation ser'ices in6 such
'ehiclesC
?ii@ carries on a taxable acti'ity referred to in sub&para(raph ?i@
but the 'ehicle .as not ac9uired for the purposes of such
taxable acti'ityC
?(@ the taxable supply or taxable importation to .hich the claim relates
is the repair or maintenance of a passen(er 'ehicle and the claimant
B
?i@ does not carry on a taxable acti'ity refurbishin( for resale6 or
in'ol'in( the hirin( of6 such 'ehiclesC
?ii@ carries on a taxable acti'ity referred to in sub&para(raph ?i@
but the (oods or ser'ices ac9uired for repair or maintenance
do not directly relate to such taxable acti'ityC
?h@ the claim is in respect of a taxable supply or taxable importation of
entertainment and the claimant B
Pa(e & 46
DRAFT
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?i@ does not carry on6 in .hole or in part6 a taxable acti'ity
pro'idin( entertainment nor .as the entertainment pro'ided
to an employee of the claimant as part of the re.ard for
ser'ices rendered by such employee to the claimantC
?ii@ carries on a taxable acti'ity pro'idin( entertainment6 in
.hole or in part6 but the entertainment .as not pro'ided by
the claimant in the ordinary course of such taxable acti'ityC
?i@ the claim relates to fees or subscriptions paid by such person in
respect of the membership of any person in a club6 association6 or
society of a sportin(6 social6 or recreational natureC
?4@ the claim relates to a taxable supply or taxable importation of
petroleum products and such products are not .holly for use in the
taxable acti'ity carried on by the claimant.
?2@ %he total amount of input tax allo.able to a taxable person as a deduction
under this Part is the sum of the B
?a@ input tax payable in respect of taxable supplies made to such
person6 and taxable imports made by such person6 durin( the tax
period .here the supply or import is for use in a taxable acti'ity
carried on by such personC
?b@ input tax deduction allo.ed under this section6 section 14 and
section 5)C
?c@ amount e9ual to the tax fraction of any amount paid durin( the tax
period by such person to a supplier in respect of the redemption of a
to3en referred to in section 36C
?d@ amount6 if any6 carried for.ard under section 54C
?e@ tax fraction of se'enty percent of the price for .hich a re(istrant
.ho deals in second&hand 'ehicles sold a second&hand 'ehicle6
other than a 'ehicle imported by such re(istrant dealer6 .here B
?i@ the supply of the 'ehicle to the re(istrant dealer .as not a
taxable supplyC
?ii@ the re(istrant dealer sells the second&hand 'ehicle in a
taxable supply on .hich tax is char(ed at the standard rateC
and
?iii@ the supply of the 'ehicle is for a consideration of ten
thousand dollars ?H1)6))).))@ or more.
?3@ A claim for input tax deduction6 .here a taxable supply or taxable
importation is used in the course or furtherance of both a taxable acti'ity
and a non&taxable acti'ity6 must be made and is calculable and allo.able
in the manner prescribed in re(ulations.
?4@ A taxable person must not submit a claim for input tax deduction to the
*A% ,ommissioner that is not allo.able under subsection ?1@ of this
section or section 14.
Pa(e & 4!
DRAFT
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?5@ -or the purposes of this section B
?a@ a taxable acti'ity is an acti'ity in'ol'in( the production6 supply or
importation of taxable supplies and an acti'ity is not a taxable
acti'ity to the extent the acti'ity in'ol'es B
?i@ the production or supply of exempt supplies or the
importation of exempt importsC
?ii@ the ac9uisition of taxable supplies or taxable importations
directly allocable to the ma3in( of exempt suppliesC
?b@ a supply or import of (oods or ser'ices made or recei'ed by a
taxable person is not made or recei'ed in the course or furtherance
of a taxable acti'ity to the extent the (oods or ser'ices supplied or
imported are exempt supplies or exempt importationsC
?c@ a reference to B
IentertainmentI means food6 be'era(es6 tobacco6 accommodation6
amusement6 recreation6 or other hospitality of any 3indC
Ipassen(er 'ehicleI includes a motorcar6 station .a(on6 sport utility
'ehicle6 or other road 'ehicle principally desi(ned for the
transportation of people6 but excludes a pic3&up truc3
exclusi'ely used for commercial purposesC
?a@ determine .hether a claim for input tax deduction for input tax paid
or payable by a taxable person is allo.able under this ActC
?b@ .here allo.able6 decide the amount6 if any6 of input tax deduction
allo.ed to a claimantC and
?c@ .here the claim is made pursuant to section 146 allo. the claim to
the extent authorised by the ,ommissioner /eneral.
?!@ %he *A% ,ommissioner may6 .here a taxable person does not ha'e a *A%
in'oice e'idencin( the input tax paid by such person6 allo. an input tax
deduction in the tax period in .hich the deduction arises .here the
,ommissioner is satisfied that the B
?a@ taxable person too3 all reasonable steps to ac9uire a *A% in'oiceC
?b@ failure to ac9uire a *A% in'oice .as not the fault of the taxable
personC and
?c@ the amount of input tax claimed by the taxable person is correct.
?#@ A taxable person a((rie'ed .ith a determination or decision of the *A%
,ommissioner under subsection ?6@ may ob4ect or appeal under Part =I.
*5. Po't2'-ppl, ad;-'tment' to o-tp-t ta).
?1@ Sub4ect to subsection ?2@6 this section applies in relation to a taxable
supply by a re(istrant .here B
Pa(e & 4#
DRAFT
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?a@ the supply is cancelledC
?b@ (oods pro'ided on assi(nment are returnedC
?c@ the *A% applicable to the supply chan(es because the nature of the
supply is fundamentally 'aried or alteredC
?d@ the consideration pre'iously a(reed for the supply is altered due to
an offer of a discount or for any other reasonC or
?e@ the .hole or part of the supply is returned to the re(istrant supplier.
?2@ %his section applies in a situation .here a re(istrant supplier has B
?a@ issued a *A% in'oice in relation to a supply and the amount sho.n
on the in'oice as the tax char(eable on such supply is incorrect as a
result of the occurrence of one or more e'ents referred to in
subsection ?1@C or
?b@ filed a *A% return for the tax period in .hich a supply .as made
and has accounted for an incorrect amount of output tax on such
supply as a result of the occurrence of one or more e'ents referred
to in subsection ?1@.
?3@ A re(istrant supplier must6 .here subsections ?1@ and ?2@ apply6 ma3e an
ad4ustment in accordance .ith subsection ?4@ or subsection ?6@.
?4@ A re(istrant supplier must6 .here the output tax properly char(eable in
respect of a taxable supply exceeds the output tax actually paid or
accounted for by him6 treat the amount of the excess as output tax char(ed
in relation to a taxable supply made by him in the tax period in .hich the
e'ent or e'ents referred to in subsection ?1@ occurred.
?5@ A re(istrant recipient must6 .here a re(istrant supplier issues a tax debit
note to him in respect of the balance of output tax properly payable
pursuant to subsection ?4@6 treat the additional tax sho.n in the tax debit
note as input tax payable by him in respect of a taxable supply in the tax
period in .hich the tax debit note is recei'ed.
?6@ Sub4ect to subsection ?#@6 .here output tax actually accounted for by a
re(istrant supplier exceeds the output tax properly char(eable in relation
to the supply6 the re(istrant supplier may claim an input tax deduction for
the amount of the excess in the tax period in .hich the e'ent or e'ents
referred to in subsection ?1@ occurred.
?!@ A re(istrant recipient must6 .here a re(istrant supplier issues a tax credit
note to him in respect of an excess amount of output tax char(ed as
referred to in subsection ?6@6 treat the additional tax sho.n in the credit
note as output tax payable by him in respect of a taxable supply made by
him in the tax period in .hich the tax credit note is recei'ed.
?#@ An input tax deduction under subsection ?6@ is not allo.ed .here the
re(istrant supplier has made the supply to a recipient .ho is not a
re(istrant unless the re(istrant supplier has repaid the amount of the
Pa(e & 4$
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excess output tax to such recipient B
?a@ in cashC or
?b@ as a credit a(ainst an amount o.in( to the re(istrant supplier by
such recipient.
*1. Po't2'-ppl, ad;-'tment d-e to +ad de+t.
?1@ Sub4ect to this section6 a re(istrant may claim input tax deduction for
input tax paid in respect of a taxable supply made by him .here6
subse9uently6 the re(istrant has treated the .hole or part of the
consideration for the supply as a bad debt.
?2@ %he amount of the input tax deduction allo.ed under subsection ?1@ is the
amount of the input tax paid by the re(istrant in respect of the taxable
supply .hich corresponds to the amount of the debt treated as bad by the
re(istrant.
?3@ A claim for input tax deduction pursuant to subsection ?1@ B
?a@ except .here the debt is earlier dischar(ed in ban3ruptcy6 is not
allo.able until B
?i@ a minimum period of six months has elapsed since the
taxable supply to .hich it relates too3 placeC
?ii@ the claimant has satisfied the *A% ,ommissioner that the
claimant has made reasonable efforts to reco'er the amounts
due and payableC and
?b@ sub4ect to para(raph ?a@6 arises on the date the bad debt .as .ritten
off in the accounts of the re(istrant.
?4@ A re(istrant is treated6 .here an amount in respect of .hich input tax
deduction has been allo.ed under subsection ?1@ is at any time .holly or
partly reco'ered by the re(istrant6 as ha'in( char(ed tax in respect of a
taxable supply made by him durin( the tax period in .hich the bad debt is
.holly or partly reco'ered in an amount calculated accordin( to the
formula A x >J, .here B
?a@ A is the amount allo.ed as a deduction under subsection ?1@C
?b@ > is the amount of the bad debt reco'eredC and
?c@ , is the amount of the bad debt pre'iously .ritten off..
?5@ An input tax deduction is not allo.ed under this section unless B
?a@ the taxable supply .as made to a person .ho is not a re(istrantC or
?b@ the taxable supply .as made to a re(istrant and the re(istrant
supplier claimin( the deduction issued a tax credit note to the
re(istrant recipient of the supply sho.in( the amount of input tax
deduction claimed in accordance .ith the formula referred to in
subsection ?4@.
Pa(e & 5)
DRAFT
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*2. #AT in3oice' and #AT 'ale' receipt'.
?1@ Sub4ect to the pro'isions of this section6 a re(istrant supplier .ho ma3es a
taxable supply to a re(istrant recipient must .ithin sixty calendar days
issue to the recipient an ori(inal *A% in'oice for the taxable supply in the
form6 and specifyin( the particulars6 prescribed in re(ulations.
?2@ A re(istrant supplier .ho ma3es a taxable supply to a re(istrant recipient
may issue a *A% sales receipt in lieu of a *A% in'oice B
?a@ .here the total consideration for the taxable supply is in cash and
does not exceed fifty dollarsC and
?b@ in the form6 and specifyin( the particulars6 prescribed in
re(ulations.
?3@ A re(istrant supplier must B
?a@ issue one *A% in'oice only in respect of a taxable supplyC and
?b@ .here a re(istrant recipient .ho has not .ithin sixty calendar days
after the date of a supply to him been issued a *A% in'oice ma3es a
re9uest in .ritin( for the issue of such in'oice6 comply .ith the
re9uest .ithin fourteen calendar days after recei'in( it.
?4@ A re(istrant supplier may6 .here a re(istrant recipient claims to ha'e lost
the ori(inal *A% in'oice for a taxable supply6 issue to the recipient a copy
of such in'oice clearly mar3ed IcopyI.
?5@ A re(istrant supplier .ho ma3es a taxable supply to a recipient .ho is not
a re(istrant must issue to such recipient a *A% sales receipt for the taxable
supply in the form6 and specifyin( the particulars6 prescribed in
re(ulations.
?6@ A person .ho is not a re(istrant must not issue a *A% in'oice or a *A%
sales receipt.
?!@ A re(istrant must not issue a *A% in'oice or *A% sales receipt except in
accordance .ith the pro'isions of this section.
?#@ An a(ent of a re(istrant supplier may6 .here the a(ent ma3es a taxable
supply as a(ent to a re(istrant recipient6 issue a *A% in'oice in relation to
the supply and the re(istrant supplier as principal may not issue a *A%
in'oice in relation to the same supply.
?$@ An a(ent of a re(istrant recipient .ho recei'es a taxable supply as a(ent
may re9uest the re(istrant supplier to issue to the a(ent a *A% in'oice in
relation to the supply and the re(istrant supplier may not issue a *A%
in'oice to the principal of the a(ent in relation to the same supply.
*3. Ta) credit note' and ta) de+it note'.
?1@ A tax credit note must be issued B
Pa(e & 51
DRAFT
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?a@ by a re(istrant supplier to a re(istrant recipient .here a *A% in'oice
issued by the supplier sho.s an amount as tax char(ed in excess of
the tax properly char(eable in respect of the supply made to the
recipientC and
?b@ in the form6 and specify the particulars6 prescribed in re(ulations.
?2@ A tax debit note must be issued B
?a@ by a re(istrant supplier to a re(istrant recipient .here a *A% in'oice
issued by the supplier sho.s an amount as tax char(ed that is less
than the tax properly char(eable in respect of the supply made to
the recipientC and
?b@ in the form6 and specify the particulars6 prescribed in re(ulations.
?3@ A person .ho is not a re(istrant must not issue a tax credit note or a tax
debit note.
?4@ A re(istrant must not issue a tax credit note or a tax debit note except in
accordance .ith the pro'isions of this section.
?5@ A re(istrant B
?a@ must issue only one tax credit note or tax debit note in respect of
tax improperly char(ed on a taxable supplyC and
?b@ may issue to a re(istrant .ho claims to ha'e lost the ori(inal tax
credit note6 or tax debit note6 a copy note clearly mar3ed IcopyI.
*&. 6arr, (or7ard o( e)ce'' credit' and re(-nd o( ta).
?1@ %his section applies .here &
?a@ the total amount of input tax deductible by a re(istrant for a tax
period exceeds the output tax for such periodC or
?b@ the amount of tax paid by a person6 in circumstances other than that
specified in para(raph ?a@6 exceeds the amount properly char(eable
to tax under this Act.
?2@ Sub4ect to this section6 .here para(raph ?a@ of subsection ?1@ applies B
?a@ the excess is carried for.ard to the next tax period and treated as
input tax deductible in that periodC and
?b@ if any excess remains after bein( carried for.ard and used as an
input tax deductible in three consecuti'e tax periods6 the re(istrant
may file .ith the *A% ,ommissioner a claim for refund for the
amount remainin( in the form and manner prescribed by
re(ulations.
?3@ Sub4ect to subsection ?4@6 the ,ommissioner must allo. a claim for refund
under para(raph ?b@ of subsection ?2@ to the extent the ,ommissioner is
satisfied that the re(istrant is entitled to the amount of the refund claimed
B
Pa(e & 52
DRAFT
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?a@ by the end of the third calendar month follo.in( the date a claim
for refund is filedC or
?b@ .here the ,ommissioner orders an audit of the claim for refund6
.ithin ten .or3in( days after conclusion of the audit if later than
the end of the third calendar month period.
?4@ %he ,ommissioner in allo.in( a claim for refund pursuant to subsection
?3@ B
?a@ may apply the amount of the refund claimed in reduction of B
?i@ any tax6 le'y6 interest6 or penalty payable by the re(istrant
under this ActC
?ii@ any unpaid amounts in taxes o.in( by the re(istrant under
any other Acts6 or pro'isions of Acts6 administered by the
,entral e'enue A(encyC and
?b@ after applyin( the refund in accordance .ith para(raph ?a@6 must
refund any excess remainin( to the re(istrant claimin( the refund.
?5@ A re(istrant may file6 in the form and manner prescribed by re(ulations6 a
claim for refund .ith the ,ommissioner for excess input tax deductions
attributable to 8ero rated supplies .here B
?a@ at least fifty percent of the amount of the re(istrant7s taxable
supplies for the tax period is taxed at a 8ero percent rateC and
?b@ the re(istrant reports for the taxable period an excess referred to in
para(raph ?a@ of subsection ?1@.
?6@ %he ,ommissioner must allo. a claim for refund under subsection ?5@ to
the extent the ,ommissioner is satisfied the re(istrant is entitled to the
amount of the refund claimed B
?a@ by the end of the first calendar month follo.in( the date the claim
for refund filedC or
?b@ .here the ,ommissioner orders an audit of the claim6 .ithin ten
.or3in( days after conclusion of the audit if later than the end of
the first calendar month period.
?!@ %he ,ommissioner in allo.in( a claim for refund pursuant to subsection
?6@ must apply the refund and refund the balance in accordance .ith
para(raphs ?a@ and ?b@ of subsection ?4@.
?#@ 2ot.ithstandin( subsections ?4@ and ?!@6 any excess refund to a re(istrant
of fi'e hundred dollars or less must be carried for.ard to the next
succeedin( tax period and be accounted for as input tax deduction.
?$@ A person may6 .here para(raph ?b@ of subsection ?1@ applies6 file a claim
.ith the ,ommissioner for refund of the tax o'erpaid in the form and
manner prescribed by re(ulations.
?1)@ In a claim for refund filed by a re(istrant pursuant to subsection ?$@ B
Pa(e & 53
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?a@ the ,ommissioner must treat the claim as if it .ere a claim made
under para(raph ?b@ of subsection ?3@C and
?b@ to the extent any output tax claimed by the re(istrant to be
refundable .as paid by a recipient .ho is not a re(istrant6 the
output tax is refundable only to the extent the re(istrant .ill repay it
to such recipient .hether in cash or as a credit a(ainst an amount
o.in( to the re(istrant by such recipient.
?11@ %he ,ommissioner may6 .here a re(istrant has failed to file a *A% return
for any tax period as re9uired under this Act6 .ithhold payment of any
amount refundable under this section until the re(istrant files the return as
re9uired.
?12@ A claim for a refund under this section must be made .ithin three years
after the date the claimant has the ri(ht to apply for the refund.
?13@ %he ,ommissioner must ser'e on a claimant for refund a notice in .ritin(
as prescribed of the ,ommissioner7s decision in respect of the claim B
?a@ .ithin thirty calendar days of the ,ommissioner recei'in( the
claimC or
?b@ .here the ,ommissioner orders an audit of the claim6 .ithin thirty
calendar days of completion of the audit.
?14@ A claimant for a refund under this section .ho is a((rie'ed by the
,ommissioner7s decision under subsection ?13@ may ob4ect or appeal the
decision under Part =I.
?15@ In a claim for refund pursuant to subsection ?$@ filed by a claimant .ho is
not a re(istrant6 the ,ommissioner must in order of priority apply the
amount of any excess allo.ed under the claim in reduction of any tax6
le'y6 interest6 fine or penalty payable by the claimant B
?a@ under this ActC
?b@ under any other Acts6 or the pro'isions of other Acts6 administered
by the ,entral e'enue A(ency.
?16@ Para(raph ?b@ of subsection ?1@ applies to a claimant for refund of tax6
other than an international or(anisation6 under subsection ?2@ of section
56.
**. Intere't on o3erpa,ment.
?a@ pay a refund of tax allo.ed under section 54 .ithin t.o months of
the end of the rele'ant period referred to in subsections ?3@ and ?6@
of that sectionC and
?b@ .here the ,ommissioner fails to ma3e payment in accordance .ith
para(raph ?a@6 pay the claimant interest on the amount due
Pa(e & 54
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commencin( t.o months after the end of the rele'ant period
referred to in that para(raph and endin( on the date the refund is
paid.
?2@ %he ,ommissioner must6 .here the ,ommissioner is re9uired to refund
an amount of tax under this Part as a result of an ob4ection or appeal by a
person6 pay interest on the refund for the period commencin( from the
date the person paid the tax refunded and endin( on the date the
,ommissioner ma3es the refund.
?3@ Interest payable on a refund under this section is payable at the rate
prescribed in re(ulations.
*.. Other per'on' eli4i+le (or ta) re(-nd.
?1@ A claim for a refund of tax made by an exempt person pursuant to section
# B
?a@ must be made in the form and manner prescribed in re(ulationsC and
?b@ is sub4ect to such conditions and restrictions as may be prescribed
in re(ulations.
?2@ Application may be made in the form and manner prescribed in
re(ulations for a refund of tax paid on the ac9uisition of 9ualifyin( (oods
or ser'ices6 includin( unconditional (ifts6 by an eli(ible B
?a@ charitable or(anisation6 or a non&(o'ernmental or(anisation6
appro'ed by the 0inister in accordance .ith criteria prescribed in
re(ulationsC or
?b@ body6 other than referred to in para(raph ?a@ appro'ed by the
0inister.
PART #III 2 ASSESSMENTS
*/. R-le' relatin4 to a''e''ment'.
?1@ Sub4ect to subsection ?3@6 the *A% ,ommissioner may at any time ma3e6
or cause to be made6 an assessment of the taxable acti'ity carried on by a
person in order to determine such person7s liability to pay *A% .here B
?a@ a re(istrant fails to file a *A% return .ithin the time period6 or any
extended period6 referred to in section 56C
?b@ the ,ommissioner is not satisfied that a *A% return filed by a
re(istrant is accurate or reasonableC
?c@ a person .ho is not a taxable person ma3es a taxable supply and
represents that *A% is char(ed on such supplyC
?d@ a taxable person represents that a positi'e rate of tax is char(ed in
relation to a supply made by him that is B
Pa(e & 55
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?i@ not a taxable supplyC
?ii@ a taxable supply but is a 8ero rated supplyC
?iii@ a taxable supply char(eable at a different positi'e rate of taxC
?e@ the ,ommissioner is satisfied that a scheme to e'ade or abuse the
pro'isions6 and intent and purpose6 of this Act has been entered into
or carried out by any person or personsC
?f@ a person fails to submit to the ,ommissioner6 in relation to a
taxable importation made by him6 an import declaration or the
,ommissioner is not satisfied .ith an import declaration submitted
by a personC
?(@ a re(istrant applies to 'ary a *A% return pursuant to subsection ?$@
of section 56C or
?h@ the ,ommissioner has reason to belie'e a person may be an
unre(istered taxable person.
?2@ %he ,ommissioner may at any time ma3e6 or cause to be made6 an
assessment of a person7s liability to pay tax .here B
?a@ a person fails to submit to the ,ommissioner6 in relation to a
taxable importation made by him6 an import declaration or the
,ommissioner is not satisfied .ith an import declaration submitted
by a personC
?b@ the ,ommissioner has reason to belie'e that a person .ill become
liable to pay an amount of tax but is unli3ely to pay such amountC
or
?c@ a recipient of a taxable supply referred to in section 6# has acted
fraudulently or made a misrepresentation.
?3@ An assessment pursuant to para(raphs ?b@ or ?f@ of subsection ?1@6 or
para(raph ?a@ of subsection ?2@6 .here the default .as not due to the fraud
or .ilful default of the person filin( or submittin( the return or
declaration6 must be made B
?a@ .ithin fi'e years after the date the *A% return .as filed or the
import declaration submittedC or
?b@ .here an audit is ordered by the ,ommissioner .ithin the fi'e year
period referred to in para(raph ?a@6 .ithin fi'e years after the
completion of the audit.
?4@ An assessment by the ,ommissioner under this Part is based on the
information a'ailable to the ,ommissioner and is the ,ommissioner7s
reasonable estimate of the tax properly due and payable by the person
assessed.
Pa(e & 56
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?5@ %he *A% ,ommissioner must6 .here the ,ommissioner ma3es an
assessment under this section6 ser'e a notice of assessment as prescribed
on the person assessed specifyin( the B
?a@ amount of tax payable by the person assessedC
?b@ date the tax assessed is due and payableC
?c@ time6 place6 and manner of ob4ectin( to the assessment.
?6@ A person liable to pay tax may apply in .ritin( to the ,ommissioner for
an extension of time6 beyond the date on .hich the tax is due and payable6
in .hich to ma3e payment and the ,ommissioner may .here (ood cause
is sho.n B
?a@ extend the time for payment by the applicantC or
?b@ ma3e such other arran(ements .ith the applicant acceptable to the
,ommissioner to ensure payment of the tax due.
?!@ An extension of time or other arran(ement (ranted or made by the
,ommissioner pursuant to subsection ?6@ does not affect the accrual of
interest on all amounts of tax due and payable by a person that remains
outstandin( until actual payment is made.
?#@ %he ,ommissioner may6 .ithin three years after ser'ice of a notice of
assessment B
?a@ amend6 as the ,ommissioner considers necessary6 an assessmentC
and
?b@ ser'e a .ritten notice as prescribed of the amended assessment on
the person assessed.
?$@ -or all purposes of this Act B
?a@ an assessment includes an amended assessmentC
?b@ a person assessed must pay in full the tax assessed by the date
specified in the notice of assessmentC and
?b@ 'alue added tax char(ed under this Act includes an amount of tax
assessed as due and payable by the ,ommissioner in an assessment
under this Part.
*0. A''e''ment a' e3idence in proceedin4'< other doc-ment'.
?1@ %he ori(inal6 or a copy certified by the ,ommissioner6 of a notice of
assessment is recei'able in any proceedin(s as conclusi'e e'idence that
B
?a@ the assessment is a true assessment duly madeC and
?b@ except in appeal proceedin(s before the Appeals Panel6 the amount
and all particulars in the notice are correct.
?2@ A notice of assessment or other document purported to be made6 issued6 or
executed under this Act shall not be 9uashed6 or deemed to be 'oid or
Pa(e & 5!
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'oidable6 for .ant of form or by reason of mista3e6 defect or omission
.here B
?a@ the assessment or other document is in substance and effect in
conformity .ith this ActC and
?b@ the person assessed or intended to be assessed6 or affected by the
document6 is identified in the assessment or document.
PART I% IN#ESTI8ATORY PO=ERS AN
EN"OR6EMENT
*1. In3e'ti4ator, po7er' o( the 6ommi''ioner and #AT o((icer'.
?1@ %he ,ommissioner may6 for purposes of the administration and
enforcement of this Act6 by notice in .ritin( in the prescribed form
re9uire any person to B
?a@ furnish such information as the ,ommissioner specifies in the
notice concernin( himself or any other person the ,ommissioner
considers B
?i@ is an unre(istered taxable personC or
?ii@ may other.ise be liable to taxC
?b@ attend at such time and place as the ,ommissioner specifies in the
notice to be examined on oath before the ,ommissioner6 or a *A%
officer authorised by the ,ommissioner in .ritin( for such purpose6
concernin( the tax affairs of himself or any other personC
?c@ for the purposes of para(raph ?b@6 produce any record or computer
in his control that the ,ommissioner or a *A% officer may re9uire
him to produceC and
?d@ pro'ide the ,ommissioner or a *A% officer .ith access to the
premises .here a taxable acti'ity is carried on by him6 or boo3s of
account are 3ept in respect of such taxable acti'ity6 in order to B
?i@ examine the records or boo3s of account6 or any other
documents6 that relate to the taxable acti'ityC
?ii@ inspect any ra. materials6 tradin( stoc36 or other assetsC
?iii@ inspect the processes used by him6 includin( the methods
adopted in recordin( supplies.
?2@ A person carryin( on a taxable acti'ity or an employee or a(ent of such
person must6 .here a notice re9uirin( access to premises pursuant to
para(raph ?d@ of subsection ?1@ is recei'ed6 (i'e the ,ommissioner or a
*A% officer B
Pa(e & 5#
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?a@ such reasonable assistance in connection .ith the examination or
inspection as the ,ommissioner or *A% officer may re9uireC and
?b@ ans.ers6 orally or in .ritin( as the ,ommissioner or *A% officer
may re9uire6 to any 9uestions relatin( to the examination or
inspection.
?3@ A notice pursuant to para(raph ?c@ of subsection ?1@ is ade9uate and
sufficient .here the record or computer to be produced is described in the
notice .ith reasonable certainty.
?4@ %he ,ommissioner or a *A% officer may6 .here durin( an examination or
inspection it appears that there has not been a correct disclosure of
liability to tax filed in a *A% return or other.ise B
?a@ ta3e possession of boo3s of account6 or other documents or
computer records6 for further examinationC and
?b@ after the examination referred to in para(raph ?a@6 retain or ma3e
copies of6 or ta3e extracts from6 the boo3s6 documents6 or computer
records for any of the purposes of this Act.
?5@ Dithout pre4udice to the (enerality of the ,ommissioner7s po.ers under
subsection ?1@6 the ,ommissioner may by notice in .ritin( as prescribed
re9uire a ban3 or other financial institution B
?a@ to furnish the ,ommissioner .ith B
?i@ details of any ban3in( account or other assets that may be
held by or on behalf of a personC
?ii@ a copy of ban3 statements or statement of assets of any
ban3in( account or other asset referred to in sub&para(raph
?i@C
?b@ to permit the ,ommissioner6 or a *A% officer authorised in .ritin(
by the ,ommissioner for such purpose6 to inspect the records of the
ban3 or other financial institution in relation to the ban3in( account
of a personC and
?c@ to attend6 by an officer of such ban3 or other financial institution6
before the ,ommissioner to (i'e e'idence in respect of ban3
accounts or other assets that may be held by such ban3 or financial
institution on behalf of a person.
?6@ Subsection ?5@ has effect not.ithstandin( any other la. to the contrary
relatin( to pri'ile(e6 public interest6 ban3 confidentiality6 or ban3 secrecy.
?!@ 2o person must use information furnished6 or records or documents
produced6 under this section for a purpose other than that for .hich they
.ere furnished or produced.
?#@ 2o person must B
?a@ contra'ene or fail to comply .ith a pro'ision of this sectionC or
Pa(e & 5$
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?b@ pre'ent6 impede or interfere in any .ay .ith the ,ommissioner or a
*A% officer in the la.ful exercise of a po.er under this section.
.5. #AT o((icer>' po7er' o( entr, and 'ei?-re.
?1@ A *A% officer .ho has reasonable (rounds to belie'e that an offence
under this Act is bein( or is about to be committed6 or that e'idence of the
commission of such an offence is to be found6 on any premises may apply
to the e'enue ,ourt for a .arrant authorisin( the officer to B
?a@ at any time and .ithout prior notice6 enter such premises or place
.here records are 3ept and search for records relatin( to any
offence under this ActC
?b@ pursuant to a search under para(raph ?a@6 in any manner open and
remo'e or cause to be opened or remo'ed any article in .hich the
*A% officer suspects that records are 3eptC
?c@ sei8e any records that6 in the opinion of the *A% officer6 may
pro'ide e'idence material in determinin( the liability of any person
to pay tax under this ActC
?d@ retain records sei8ed pursuant to para(raph ?c@ for as lon( as may
be re9uired &
?i@ to determine a person7s liability to pay tax under this ActC or
?ii@ for any proceedin( under this ActC
?e@ examine and ma3e extracts from6 and copies of6 any records and
re9uire from any person an explanation of entries in such recordsC
and
?f@ .here a hard copy or computer dis3 of computer&stored information
is not pro'ided6 sei8e and retain the computer in .hich the
information is stored for as lon( as is reasonable to copy the
information re9uired.
?2@ A *A% officer exercisin( a po.er under subsection ?1@ must not enter or
remain on or at any premises or place .here6 on bein( re9uested by the
occupier of such premises or place6 the officer is unable to or fails to
produce the .arrant referred to in subsection ?1@.
?3@ %he o.ner6 mana(er6 or any occupier la.fully on or at a premises or place
entered or proposed to be entered by a *A% officer under this section must
pro'ide reasonable facilities and assistance for the effecti'e exercise of
the po.er by the officer.
?4@ A person .hose records or computer ha'e been remo'ed and retained
pursuant to the exercise of a po.er under subsection ?1@ may6 durin(
re(ular office hours and under such super'ision as the ,ommissioner may
determine6 examine and ma3e copies or extracts from such records or
computer.
Pa(e & 6)
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?5@ A *A% officer may6 in exercisin( a po.er under subsection ?1@6 re9uest the
assistance of a ,ustoms officer or police officer and such ,ustoms officer
or police officer must render such assistance as the *A% officer may
reasonably re9uire.
?6@ A .arrant issued under this section remains in force for one month and an
application for a .arrant must be made in the form and manner prescribed
in re(ulations.
?!@ 2o person must B
?a@ contra'ene or fail to comply .ith a pro'ision of this sectionC or
?a@ pre'ent6 impede or interfere in any .ay .ith a *A% officer in the
la.ful exercise of a po.er under this section.
.1. 6ommi''ioner ma, re@-e't 'ec-rit,.
?1@ %he *A% ,ommissioner may6 .here the ,ommissioner considers it
reasonable to do so for the protection of /o'ernment re'enues6 issue a
notice in .ritin( in the prescribed form re9uirin( a person to (i'e security
for the payment of tax that is6 or may become6 payable by such person
under this Act.
?2@ Security re9uired under subsection ?1@6 includin( a security re9uired from
a promoter of public entertainment6 must be in the amount6 form6 and
furnished .ithin the time period6 specified by the ,ommissioner in the
notice.
?3@ A promoter of public entertainment must not allo. the public
entertainment to ta3e place unless the promoter has B
?a@ paid the amount of security re9uired under subsection ?2@C and
?b@ recei'ed the ,ommissioner7s appro'al in .ritin(.
?4@ %he ,ommissioner must6 .here a security is in cash and the
,ommissioner is satisfied that the security is no lon(er re9uired6 apply the
amount of the security in the manner prescribed by re(ulations.
?5@ A person a((rie'ed .ith a decision of the ,ommissioner under subsection
?1@ may ob4ect or appeal the decision under Part =I.
.2. Sei?-re o( 4ood' and 3ehicle'.
?1@ %he *A% ,ommissioner may sei8e (oods .here the ,ommissioner has
reasonable (rounds to belie'e that B
?a@ the (oods comprise a taxable supply by a taxable person or a
taxable importationC and
?b@ 'alue added tax on the supply or import has not or .ill not be paid.
?2@ %he ,ommissioner may sei8e any 'ehicle used in the carria(e or remo'al
of (oods referred to in subsection ?1@ except .here it is sho.n that B
Pa(e & 61
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?a@ the 'ehicle .as so used .ithout the consent or 3no.led(e of the
o.ner or any person la.fully in possession or char(e of such
'ehicleC or
?b@ the o.ner or person la.fully in possession had no reason to belie'e
that the 'ehicle .as used to remo'e or carry (oods in respect of
.hich tax had not been paid.
?3@ A 'ehicle sei8ed pursuant to subsection ?2@ may in the discretion of the
,ommissioner B
?a@ be sold by public auctionC or
?b@ sub4ect to subsection ?$@6 be dealt .ith in such other manner as the
,ommissioner may direct.
?4@ /oods sei8ed pursuant to subsection ?1@ must be stored in a place
appro'ed by the ,ommissioner for the stora(e of such (oods.
?5@ Sub4ect to subsection ?6@6 the ,ommissioner must in respect of (oods or a
'ehicle sei8ed under this section ser'e on the o.ner or the person .ith
custody or control immediately before sei8ure a notice in .ritin( .ithin
fourteen days after the sei8ure B
?a@ identifyin( the (oods or 'ehicleC
?b@ statin( that the (oods or 'ehicle has been sei8ed under authority of
this section and the reason for the sei8ureC and
?c@ statin( the terms for reco'ery of the (oods or 'ehicle.
?6@ A notice under subsection ?5@ must be ser'ed .here B
?a@ a person claimin( the (oods or 'ehicle has pro'ided the
,ommissioner .ith sufficient information to enable ser'ice of the
notice on himC or
?b@ after ma3in( reasonable in9uiries6 the ,ommissioner has sufficient
information to identify the person on .hom the notice should be
ser'ed.
?!@ %he ,ommissioner must6 .here ser'ice of a notice pursuant to subsection
?6@ is not possible6 post a notice of sei8ure in a conspicuous place in or on
the premises from .hich the (oods or 'ehicle .as sei8ed.
?#@ Sub4ect to subsection ?$@6 the ,ommissioner may authorise deli'ery of
(oods or a 'ehicle sei8ed under subsection ?1@ to the person on .hom a
notice of sei8ure has been ser'ed .here such person B
?a@ pays the tax due and payable or that .ill become due and payable in
respect of the supply or importC or
?b@ (i'es security6 acceptable to the *at ,ommissioner6 for the payment
of tax that is or .ill become due and payable in respect of the
supply or import.
Pa(e & 62
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?$@ %he ,ommissioner may detain (oods or a 'ehicle sei8ed under this
section B
?a@ in the case of perishable (oods6 for such period as the
,ommissioner considers reasonable ha'in( re(ard to the condition
of the (oodsC
?b@ in any other case6 until the later of ten .or3in( days after B
?i@ the sei8ure of the (oods or 'ehicleC or
?ii@ the due date for payment of the tax on the supply or import of
the (oods or 'ehicle.
?1)@ %he ,ommissioner may B
?a@ sell the (oods or 'ehicle6 after expiry of the detention period
referred to in subsection ?$@6 in accordance .ith subsection ?3@ and
apply the proceeds of sale in order of priority to.ards the B
?i@ ,ommissioner7s costs and the tax payableC and
?ii@ restoration of the remainder of the proceeds6 if any6 to the
person liable to pay taxC
?b@ .here the proceeds of sale are not sufficient to pay the
,ommissioner7s costs and the tax payable in full6 proceed in
accordance .ith this Act for the balance of tax o.ed.
?11@ -or the purpose of this section6 F'ehicleG means a method of carria(e or
con'eyance and includes a cart or .a(on or 'essel and any trailer attached
to such 'ehicle.
?12@ 2o person must pre'ent6 impede or interfere in any .ay .ith the
,ommissioner in the exercise of the ,ommissioner7s po.ers under this
section.
.3. i'tre'' proceedin4'.
?1@ %he *A% ,ommissioner may reco'er unpaid tax by distress proceedin(s
a(ainst the personal property of the person liable to pay the tax by
specifyin( the B
?a@ person liableC
?b@ location of the propertyC and
?c@ tax liability to .hich the proceedin(s relate.
?2@ Property6 other than perishable (oods6 on .hich the ,ommissioner le'ies
a distress under this section must be 3ept for ten .or3in( days at the B
?a@ cost of the person liableC
?b@ premises .here the distress is le'ied or at such other place as the
,ommissioner may consider appropriate.
Pa(e & 63
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?3@ %he ,ommissioner may6 .here the person liable does not pay the tax due
and the costs of a distress6 sell by auction or in such other prescribed
manner the property distrained on B
?a@ in the case of perishable (oods6 .ithin such period as the
,ommissioner considers reasonable ha'in( re(ard to the condition
of the (oodsC
?b@ in any other case6 after ten .or3in( days.
?4@ %he ,ommissioner B
?a@ must apply the proceeds of a disposal pursuant to subsection ?3@ in
order of priority to.ards the B
?i@ costs of ta3in(6 3eepin( and sellin( the property distrained
onC
?ii@ tax due and payableC and
?iii@ restoration of the remainder of the proceeds6 if any6 to the
person liable to pay taxC and
?b@ .here the proceeds of the distress are not sufficient to meet the
,ommissioner7s costs and the tax due6 may proceed under this Act
.ith respect to any balance o.ed.
?5@ All costs incurred by the ,ommissioner in respect of a distress may be
reco'ered by the ,ommissioner from the person liable as tax due under
this Act.
?6@ +istress may not be le'ied under this section upon tools of trade.
.&. Ri4ht o( entr, to e)ec-te 'ei?-re and di'tre''.
%he ,ommissioner may for the purpose of executin( a sei8ure or distress under
section 64 or section 65 B
?a@ at any time enter any house or premisesC
?b@ re9uire a ,ustoms officer or a peace officer to be present .hile the
sei8ure or distress is bein( executed.
.*. Re4i'tration o( 4ood' prohi+ited -ntil pa,ment o( ta).
?1@ An authority .hich is a re(isterin( authority pursuant to any la. in force
.ithin %he >ahamas must not re(ister the o.nership of6 or a chan(e of
o.nership in6 any re(istrable (oods .hich is a taxable supply by a taxable
person or a taxable importation unless the applicant for re(istration
produces to the authority B
?a@ in case of a taxable importation6 a ,ustoms receipt or other
document issued by the ,omptroller of ,ustoms certifyin( that the
import B
Pa(e & 64
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?i@ is standard rated at fifteen per cent of its 'alue and 'alue
added tax payable under this Act has been paid in full in
respect of the importC
?ii@ is 8ero rated and no tax is payable under this Act in respect of
the importC
?iii@ is special rated at ten per cent of its 'alue and 'alue added
tax payable under this Act has been paid in full in respect of
the importC
?b@ in case of a taxable supply6 a declaration in the prescribed form by
the re(istrant supplier certifyin( B
?i@ that the re(istrant supplied the (oodsC
?ii@ the rate of tax char(ed on the supply by the re(istrant
supplierC
?iii@ that the output tax payable under this Act on the supply has
been or .ill be paid in full by the re(istrant.
?2@ A re(isterin( authority must not re(ister the o.nership of6 or a chan(e of
o.nership in B
?a@ any re(istrable (oods .hich is an exempt supply or an exempt
importation unless the applicant for re(istration produces to the
authority a certificate by the *A% ,ommissioner6 issued in the
prescribed form6 certifyin( that the supply or importation of such
(oods is an exempt supply or an exempt importation6 as the case
may beC
?b@ any re(istrable (oods supplied by a person .ho is not a re(istrant
for .hich a refund or exemption under this Act has been (ranted
unless the applicant for re(istration produces to the re(isterin(
authority a certificate issued by the *A% ,ommissioner or the
,omptroller of ,ustoms in the prescribed form6 certifyin( that the
tax payable under this Act has been paid in full.
... Reco3er, o( ta) (rom recipient o( '-ppl, in ca'e o( (ra-d.
?1@ %he *A% ,ommissioner may6 .here a taxable person due to fraud or
misrepresentation by the recipient of a taxable supply has incorrectly
treated the supply as an exempt or 8ero rated supply6 ma3e an assessment
on such recipient for B
?a@ the amount of unpaid tax in respect of the supplyC and
?b@ any interest6 fine or other penalty payable under this Act.
?2@ %he ,ommissioner must ser'e a notice of assessment as prescribed on a
recipient under subsection ?1@ specifyin( the B
?a@ amount of the tax6 to(ether .ith any interest6 fine or other penalty6
assessedC
Pa(e & 65
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?b@ date the amount assessed is due and payableC and
?3@ A recipient ser'ed .ith a notice of assessment under subsection ?2@ must
pay the amount assessed by the date specified in the notice.
?4@ 2ot.ithstandin( subsection ?1@ B
?a@ the ,ommissioner may reco'er the tax6 interest or penalty from the
taxable person .ho made the supplyC
?b@ the taxable person6 .here he has paid the tax6 interest or penalty6
may reco'er the amount paid from the recipient.
?c@ any amount reco'ered from the recipient must be credited a(ainst
the liability of the taxable personC and
?d@ any amount reco'ered from the taxable person must be credited
a(ainst the liability of the recipient.
./. 6ommi''ioner ha' po7er to reco3er ta) (rom a4ent.
?1@ %he *A% ,ommissioner may6 by notice in .ritin( as prescribed6 re9uire a
person to be the a(ent of another person .ho is liable to pay tax under this
Act .here the person liable to pay tax fails to do so by the due date and
the person re9uired by the ,ommissioner to be a(ent B
?a@ o.es or may o.e money to the person liableC
?b@ holds or may subse9uently hold money for or on account of the
person liableC
?c@ has authority from some other person to pay money to the person
liableC or
?d@ has possession of the property of the person liable.
?2@ A person in receipt of a notice under subsection ?1@ is deemed to be the
a(ent of the person liable to pay tax and must pay the money or deli'er
the property specified in the notice to the ,ommissioner B
?a@ in the case of money or property due or held6 .ithin fifteen calendar
days of the date of ser'ice of the noticeC
?b@ in case of money or property to become due or held6 .ithin fifteen
calendar days of the date on .hich B
?i@ the money becomes dueC or
?ii@ the money or property is held in any of the circumstances
referred to in subsection ?1@.
?3@ %he ,ommissioner must ser'e a copy of the notice referred to in
subsection ?1@ on the person liable to pay tax.
?4@ An a(ent under subsection ?1@ .ho ma3es a payment or deli'ers property
to the ,ommissioner pursuant to subsection ?2@ is treated as ha'in( acted
Pa(e & 66
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under the authority of the person liable to pay the tax6 and of all other
persons concerned6 and such payment or property is treated in the hands
of the ,ommissioner as if it .ere tax due under this Act.
?5@ 2ot.ithstandin( any other la. to the contrary6 this section has effect and a
person re9uired to be an a(ent under subsection ?1@ incurs no liability in
complyin( .ith the pro'isions of subsection ?2@.
.0. -tie' o( recei3er'.
?1@ In this section6 a recei'er is a person .ho in relation to an asset .ithin %he
>ahamas is B
?a@ a li9uidator of a companyC
?b@ a 4udicial recei'er or a recei'er appointed out of courtC
?c@ a trustee for a ban3rupt personC
?d@ a mort(a(ee in possessionC
?e@ an executor of the estate of a deceased personC or
?f@ any other person conductin( business on behalf of a person le(ally
incapacitated.
?2@ A recei'er must notify the *A% ,ommissioner in .ritin( .ithin fourteen
calendar days after the person is appointed recei'er6 or ta3es possession of
an asset of a person liable to 'alue added tax .ithin %he >ahamas6
.hiche'er e'ent occurs first.
?3@ %he *A% ,ommissioner may in .ritin( notify a recei'er of the amount
.hich appears to the ,ommissioner to be sufficient to pro'ide for any tax
.hich is or .ill become payable by the person .hose assets are in the
possession of the recei'er.
?4@ A recei'er B
?a@ must set aside out of the proceeds of sale of an asset B
?i@ the amount notified by the ,ommissioner under subsection
?3@C or
?ii@ such lesser amount as the ,ommissioner may subse9uently
a(ree .ith the recei'erC
?b@ is liable6 to the extent of the amount set aside6 for the tax of the
person .ho o.ned the assetC and
?c@ not.ithstandin( any pro'ision of this section6 may pay any debt
that has priority o'er the tax referred to in this section.
?5@ A recei'er is personally liable to the extent of any amount re9uired to be
set aside under subsection ?4@ for the tax referred to in subsection ?3@
.here6 and to the extent that6 the recei'er fails to comply .ith the
re9uirements of this section.
Pa(e & 6!
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.1. 6ommi''ioner ha' po7er to declare repre'entati3e'.
?1@ %he *A% ,ommissioner may6 .here the ,ommissioner considers it
necessary or desirable to do so for the administration and enforcement of
this Act6 declare a person to be a representati'e of a taxable person in the
form and manner prescribed in re(ulations.
?2@ A person .ho is declared by the ,ommissioner under subsection ?1@ to be
the representati'e of a taxable person is deemed to be such representati'e
and must perform the duties imposed by this Act on the taxable person6
includin( the duty to re(ister and pay 'alue added tax.
?3@ A representati'e is personally liable6 in his representati'e capacity6 for the
payment of tax payable .here the representati'e durin( the time the
amount remains unpaid B
?a@ alienates6 char(es6 or disposes of any money recei'ed or accrued in
respect of .hich the tax is payableC
?b@ disposes of or parts .ith any fund or money belon(in( to the
taxable person .hose representati'e he is6 and from or out of .hich
such tax could le(ally ha'e been paid6 .hich B
?i@ is in the possession of the representati'eC or
?ii@ comes to the representati'e after the tax becomes payable.
?4@ 2ot.ithstandin( any pro'ision of this section6 a taxable person must
perform any duty imposed under this Act on a taxable person .hich a
representati'e declared under this section has failed to perform.
?5@ In this section6 a representati'e in relation to a taxable person is B
?a@ the financial controller or the desi(nated officer of a company6 other
than a company in li9uidationC
?b@ a member of the committee of mana(ement of an unincorporated
association or bodyC
?c@ a person .ho is responsible for accountin( for the receipt and
payment of money or funds on behalf of a company or
unincorporated association or body6 .here para(raphs ?a@ and ?b@
do not applyC
?d@ the li9uidator of a company in li9uidationC
?e@ a person responsible for accountin( for B
?i@ the receipt and payment of money under the pro'isions of
any la.C
?ii@ the receipt and payment of public fundsC
?iii@ the receipt and payment of funds 'oted by Parliament to a
statutory bodyC
?f@ a partner in a partnershipC
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?(@ a trustee of a trustC
?h@ a person controllin( the affairs of a resident or non&resident of %he
>ahamas6 includin( a mana(er of a taxable acti'ity carried on by
the resident or non&resident of %he >ahamas.
?6@ A person a((rie'ed .ith a decision of the ,ommissioner under subsection
?1@ may ob4ect or appeal the decision under Part =I.
/5. Scheme' (or o+tainin4 ta) +ene(it'.
2ot.ithstandin( any other pro'ision of this Act6 the *A% ,ommissioner may B
?a@ .here the ,ommissioner is satisfied a scheme has been entered into
or carried outC
?b@ .here a person has obtained a tax benefit in connection .ith the
scheme in a manner that the ,ommissioner determines constitutes
an abuse of the pro'isions of this ActC and
?c@ .here6 ha'in( re(ard to the substance of the scheme6 it is
reasonable to conclude that the person6 or one of the persons6 .ho
entered into or carried out the scheme did so for the sole or
dominant purpose of enablin( the person referred to in para(raph
?b@ to obtain the tax benefit6
determine the liability of the person .ho has obtained the tax benefit B
?i@ as if the scheme had not been entered into or carried outC or
?ii@ in such manner as the ,ommissioner6 ha'in( re(ard to the
circumstances of the case6 considers appropriate for the
pre'ention or reduction of the tax benefit.
/1. Lia+ilit, o( a director or 'imilar o((icer o( a compan, to pa, #AT.
?1@ Sub4ect to subsection ?2@6 a person is 4ointly and se'erally liable to(ether
.ith a company to pay *A% payable by the company under this Act6
to(ether .ith interest and penalties in relation to such *A%6 .here B
?a@ the company fails to pay an amount of *A% payable by the
company .ithin the time prescribedC and
?b@ such person .as at the time the company .as liable to pay the
amount of *A% a director or other similar officer of the company or
acted6 or purported to act6 in such a capacity.
?2@ A person referred to in para(raph ?b@ of subsection ?1@ is not liable and
may not be assessed for *A% .here the ,ommissioner is satisfied that
such person exercised the de(ree of care6 dili(ence6 and s3ill that a
reasonably prudent person .ould ha'e exercised in order to pre'ent the
failure by the company to pay the amount of *A% payable .ithin the
prescribed time.
Pa(e & 6$
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?3@ %he *A% ,ommissioner must ser'e on a person liable under subsection
?1@ a notice of assessment specifyin( the B
?a@ amount of the tax6 to(ether .ith any interest6 fine or other penalty6
assessedC
?b@ date the amount assessed is due and payableC and
?4@ A person ser'ed .ith a notice of assessment pursuant to subsection ?3@ B
?a@ must pay in full the amount assessed by the date specified in the
noticeC
?b@ may ob4ect or appeal the decision under Part =I.
?5@ %he *A% ,ommissioner may not assess a person for an amount of *A%
payable by such person under this section .here B
?a@ more than se'en years ha'e passed since the filin( of the return
relatin( to the amount concernedC or
?b@ in the case .here an assessment .as made by the ,ommissioner
under Part *III6 more than se'en years ha'e passed since the date
of the assessment relatin( to the amount.
?6@ A person .ho pays an amount of *A% payable by a company under this
section6 in .hole or in part6 is entitled to contribution in respect of the
amount so paid from the other persons .ho are liable to pay the amount
under subsection ?1@.
/2. Temporar, clo'-re o( +-'ine'' premi'e'.
?1@ %he *A% ,ommissioner may ma3e application to the e'enue ,ourt for
an order of the ,ourt to forcibly close one or more business premises of a
person .ho has repeatedly contra'ened or failed to comply .ith this Act
or the re(ulations by B
?a@ failin( to issue *A% in'oices in accordance .ith section 52C
?b@ issuin(6 or failin( to issue6 tax debit notes or tax credit notes
contrary to section 53C
?c@ failin( to file *A% returns in accordance .ith section 46C
?d@ failin( to pay tax .hen due under any pro'ision of this Act or the
re(ulationsC
?e@ improperly claimin( *A% refunds contrary to section 54C or
?f@ impedin( tax administration contrary to section $1.
?2@ %he ,ommissioner may6 .here the e'enue ,ourt issues an order
pursuant to subsection ?1@6 use such reasonable force or police assistance
as may be necessary to close any or all of the premises specified in the
Pa(e & !)
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order includin( barrin( access to the premises .ith loc3s6 fencin(6
boardin(6 or other appropriate methods.
?3@ -or the purposes of subsection ?1@6 a repeated contra'ention or non&
compliance is one that is committed by a person .ithin one year of receipt
by such person of a .arnin( letter under subsection ?13@ of section 15
statin( thatB
?a@ a specified contra'ention or non&compliance referred to in
para(raphs ?a@ throu(h ?f@ of subsection ?1@ of this section has been
committed more than once .ithin the precedin( yearC and
?b@ a repetition of the specified contra'ention or non&compliance may
result in closure of one or more of such person7s business premises
under this section.
/3. P-+lication o( name' o( #AT de(a-lter'.
?1@ %he *A% ,ommissioner may publish6 in a ne.spaper circulatin( in the
>ahamas or in such other manner as the ,ommissioner deems
appropriate6 the name of a person .ho B
?a@ fails to file a *A% return in accordance .ith this Act on three or
more consecuti'e occasionsC
?b@ bein( liable to pay *A%6 fails to pay the amount of *A% payable on
three or more consecuti'e occasionsC or
?c@ contra'enes any pro'ision of this Act or the re(ulations that is
classified as a 'ery serious or serious contra'ention or non&
compliance.
?2@ Subsection ?1@ has effect not.ithstandin( any pro'ision of any other la.
to the contrary.
PART % RE6OR AEEPIN8 AN A66O$NTS
/&. Relia+le acco-ntin4 record' to +e 9ept.
?1@ Sub4ect to subsection ?3@6 e'ery taxable person and any other person liable
to pay tax under this Act must maintain .ithin %he >ahamas up to date
and reliable accountin( records in the "n(lish lan(ua(e in relation to B
?a@ all sums in money and money7s .orth recei'ed and expended by
such person in a taxable transaction and the matter in respect of
.hich such receipt and expenditure ta3es place6 inclusi'e of all
sales6 purchases and other transfers comprisin( the transactionC and
?b@ input tax6 output tax and the entitlement to a claim of input tax
deduction6 interest or a refund.
Pa(e & !1
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?2@ Accountin( records maintained pursuant to this section must be 3ept for a
period of se'en years after B
?a@ the end of the tax period to .hich such records relate6 in the case of
a re(istrantC or
?b@ the occurrence of the taxable transaction to .hich such records
relate.
?3@ A person may apply in .ritin( to the *A% ,ommissioner for permission to
dispose of records re9uired to be maintained under this section prior to the
expiration of the period referred to in subsection ?2@ and the
,ommissioner may6 if satisfied that the records are not li3ely to be
re9uired for any tax purposes6 (rant such permission in .ritin(.
?4@ %he ,ommissioner may6 for any purpose under Part III6 Part *II6 Part *III
or Part I=6 order an audit of the accounts of a taxable person or any other
person.
/*. Nat-re o( record' to +e 9ept.
?1@ -or the purposes of subsection ?1@ of section !46 accountin( records must
as applicable B
?a@ correctly document and explain all taxable transactionsC
?b@ enable a taxable person to accurately prepare *A% in'oices and
ma3e accurate *A% returnsC
?c@ enable the ,ommissioner to determine .ith reasonable accuracy at
any time the liability of the taxable person to pay tax in respect of
the taxable acti'ity carried on by himC
?d@ be maintained usin( the forms prescribed by this Act and the
re(ulationsC and
?e@ include as applicable in order to facilitate ?a@6 ?b@ and ?c@ B
?i@ tax accountsC
?ii@ purchase and sales led(ersC
?iii@ in'oices6 .hether or not they are *A% in'oices6 for
ac9uisitions of (oods or ser'ices by the personC
?i'@ copies of in'oices6 .hether or not they are *A% in'oices6
issued for supplies of (oods or ser'ices made by the personC
?'@ records of any *A% in'oices for .hich the recipient of the
supply re9uested a copy to be issuedC
?'i@ tax debit notes and tax credit notes issued and recei'edC
?'ii@ income and expense accountsC
?'iii@ till rolls6 audit rolls and tapes or similar recordsC
?ix@ ban3 statementsC
Pa(e & !2
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?x@ customs documentation relatin( to imports and exports made
by the personC
?xi@ sales in'oices and sales receipts6 .hether or not they are *A%
sales receiptsC
?xii@ records relatin( to the supply of (oods or ser'ices to officers6
directors6 and employees6 .hether or not the supplies .ere
made for considerationC
?xiii@ accountin( instruction manuals6 systems6 pro(rammes and
any rele'ant documentation in use to describe the accountin(
systemC and
?xi'@ any other records related to the taxable acti'ity6 such as
boo3in(s6 diaries6 correspondence6 computer print&outs6 audit
reports6 contracts6 or any other accounts or records in any
.ay related to the personKs taxable acti'ity.
?2@ A taxable person must maintain records by electronic means includin(6
but not limited to6 the use of B
?a@ such electronic tills or point of sale systems as may be appro'ed by
the *A% ,ommissionerC and
?b@ computeri8ed accountin( systems as appro'ed by the *A%
,ommissioner.
PART %I O!BE6TIONS AN APPEALS
/.. O+;ection to a deci'ion o( the #AT 6ommi''ioner.
?1@ %his section applies to an appealable decision of the *A% ,ommissioner
under this Act.
?2@ -or the purposes of this section6 an appealable decision is a decision
referred to in B
?a@ subsection ?6@ of section 22C
?b@ subsection ?14@ of section 26C
?c @ subsections ?6@ and ?1)@ of section 46C
?d@ subsection ?14@ of section 54 C
?e@ subsection ?5@ of section 61C
?f@ subsection ?6 @ of section 6$C and
?(@ subsection ?4@ of section !1.
?3@ A person a((rie'ed .ith an appealable decision may lod(e .ith the
,ommissioner /eneral an ob4ection to the decision .ithin thirty calendar
days after the date of ser'ice of the notice of the decision on such person.
Pa(e & !3
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?4@ %he ,ommissioner /eneral may accept an ob4ection lod(ed after the time
specified in subsection ?3@ .here the ,ommissioner /eneral is satisfied
that there has been no unreasonable delay on the part of a person in
lod(in( the ob4ection due to B
?a@ absence from %he >ahamasC
?b@ sic3nessC or
?c@ other reasonable cause.
?5@ An ob4ection to an appealable decision must B
?a@ be made by notice in .ritin( in the form and manner prescribed by
re(ulationsC
?b@ specify in detail the (rounds on .hich the ob4ection is madeC and
?c@ .here it is an ob4ection to an assessment of tax6 be accompanied by
payment of the total amount of tax assessed6 or security for such
amount in a form acceptable to the *A% ,ommissioner6 at the time
the ob4ection is lod(ed.
?6@ An ob4ection to an assessment that is based solely on an error of
calculation in a *A% return filed .ith the *A% ,ommissioner does not
suspend the ob4ector7s obli(ation to pay the amount assessed.
?!@ %he ,ommissioner /eneral must6 .ithin ninety calendar days after the
ob4ection is lod(ed6 consider the ob4ection and after such consideration
ser'e a notice in .ritin( as prescribed on the ob4ector specifyin( the
,ommissioner /eneral7s decision to B
?a@ allo. the ob4ection6 in .hole or in partC or
?b@ disallo. the ob4ection.
?#@ An ob4ector may6 .here ninety calendar days ha'e passed since the
ob4ection .as lod(ed and the ,ommissioner /eneral has not ser'ed a
notice in .ritin( on the ob4ector as referred to in subsection ?6@6 appeal
a(ainst the decision to the Appeals Panel under section !$ as if the
,ommissioner /eneral had made a decision to disallo. the ob4ection.
?$@ An ob4ector a((rie'ed by the ,ommissioner /eneral7s decision on an
ob4ection may appeal a(ainst the decision to the Appeals Panel under
section !!.
?1)@ A person .ho fails to file an ob4ection to an appealable decision under this
section has no further ri(ht of ob4ection or appeal under this Act.
?11@ A notice under subsection ?!@ of the ,ommissioner /eneral7s decision is
conclusi'e e'idence that the decision has been made and6 sub4ect to such
further ri(hts of appeal the ob4ector may ha'e6 that the decision is correct.
Pa(e & !4
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//. Appeal to the Appeal' Panel.
?1@ An ob4ector a((rie'ed .ith the ,ommissioner /eneral7s decision on an
ob4ection under this Part may6 .ithin thirty calendar days after ser'ice of
the ,ommissioner /eneral7s notice of decision on such ob4ector6 appeal
a(ainst such decision to the Appeals Panel.
?2@ %he Appeals Panel may accept an ob4ection lod(ed after the time specified
in subsection ?1@ .here the Panel is satisfied that there has been no
unreasonable delay on the part of the appellant in lod(in( the appeal due
to B
?a@ absence from %he >ahamasC
?b@ sic3nessC or
?c@ other reasonable cause.
?3@ An appeal to the Appeals Panel must B
?a@ be by notice of appeal6 in the prescribed form and manner6 filed
.ith the Appeals PanelC and
?b@ specify in detail the (rounds on .hich the appeal is made.
/0. :earin4 +, Appeal' Panel.
?1@ An appellant is limited to the (rounds specified in the notice of appeal
unless the Appeals ,ommissioners (rant lea'e to add ne. (rounds.
?2@ %he Appeals Panel6 .here it hears an appeal6 must ser'e notice of the
hearin( on the appellant in the form and manner prescribed in re(ulations.
?3@ %he Appeals Panel may consider an appeal a(ainst the ,ommissioner
/eneral7s decision on an ob4ection to an assessment .here the
,ommissioner /eneral certifies that the appellant B
?a@ has paid the full amount of tax due under the assessmentC or
?b@ has (i'en sufficient security acceptable to the ,ommissioner
/eneral for the amount of the tax that is unpaid and any interest and
penalty that may become payable.
?4@ %he Appeals Panel may on an appeal B
?a@ in case of an assessment under appeal6 confirm6 'ary6 or set aside
the ,ommissioner /eneral7s assessmentC or
?b@ in any other case6 set the ,ommissioner /eneral7s decision aside
and remit the matter bac3 to the ,ommissioner /eneral for
reconsideration in accordance .ith the directions of the Appeals
,ommissioners.
?5@ %he Appeals Panel must6 .ithin ninety calendar days after an appeal has
been lod(ed6 hear and decide the appeal and ser'e a notice of decision in
.ritin(.
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?6@ An appellant may6 .here ninety calendar days ha'e passed since an appeal
.as lod(ed and the Appeals Panel has not ser'ed a notice of decision
referred to in subsection ?5@6 further appeal the matter to the e'enue
,ourt under section #1 as if the Panel had made a decision disallo.in( the
appeal.
/1. Appeal to the Re3en-e 6o-rt.
An appellant .ho is a((rie'ed .ith a decision of the Appeals Panel under this
Part may6 .ithin t.enty&one days after bein( ser'ed .ith a notice of decision
under subsection ?5@6 or deemed notice pursuant to subsection ?6@6 of section !#
appeal a(ainst the decision to the e'enue ,ourt.
PART %II MIS6ELLANEO$S
05. #AT or ta)pa,er identi(ication n-m+er.
?1@ A re(istrant must include in any *A% return6 notice or other document
prescribed or used for the purposes of this Act the uni9ue 'alue added tax
identification number issued to the re(istrant pursuant to para(raph ?a@ of
subsection ?3@ of section 22.
?2@ %he *A% ,ommissioner may issue a taxpayer identification number to a
person6 not bein( a re(istrant6 liable to pay tax under this Act and re9uire
such person to include such number in any application6 notice6 declaration
or other document prescribed or used for the purposes of this Act .
?3@ A person must not in any document prescribed or used for the purposes of
this Act include a taxpayer identification number that has not been issued
to such person by the *A% ,ommissioner.
01. O((icer' o( -nincorporated +odie'.
-or the purposes of this Act B
?a@ a liability or obli(ation imposed by or under this Act or the
re(ulations on an unincorporated body is imposed6 4ointly and
se'erally6 on B
?i@ the bodyC and
?ii@ each of the persons .ho are officers of the body at the time
the obli(ation or liability is imposedC
?b@ a taxable supply or taxable importation made or recei'ed by an
unincorporated body6 or a taxable acti'ity carried on by such a
body6 is a supply or importation of or an acti'ity carried on by the
body and not by a member or officer .ho ma3es such a supply or
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importation6 or carries on such acti'ity6 in his capacity as a member
or officer of such bodyC
?c@ the existence of an unincorporated body6 and a taxable acti'ity
carried on by such body6 is not affected by any chan(e in the
members or officers of the bodyC
?d@ a document ser'ed on an unincorporated body is treated as ser'ed
on the body and the the officers of the bodyC
?e@ a contra'ention or non&compliance or an offence committed by an
unincorporated body is treated as ha'in( been committed by the
officers of the unincorporated bodyC
?f@ an officer of an unincorporated body means B
?i@ a partner of a partnershipC
?ii@ a participant in a 4oint 'entureC
?iii@ a trustee of a trustC and
?i'@ in any other case B
?A@ a person .ho holds office in the body as chairman6
president6 treasurer6 secretary6 or any other similar
officeC
?>@ .here there is no officer of the body6 a member of a
committee responsible for mana(ement of the affairs
of the bodyC or
?,@ .here ?A@ or ?>@ does not apply6 a member of the
bodyC and
?(@ an unincorporated body includes an unincorporated association.
02. i''ol-tion o( partner'hip' and other -nincorporated +odie' or
a''ociation'.
5n the dissolution of a partnership or other unincorporated body or association
B
?a@ .here one or more6 but not all6 of the partners or members retire or
.ithdra. or a ne. partner or member is admittedC
?b@ .here a ne. partnership or unincorporated body or association
comes into existence consistin( of the remainin( members and one
or more ne. membersC and
?c@ .here the ne. entity referred to in para(raph ?b@ continues to carry
on the taxable acti'ity carried on by the dissol'ed entity6
the dissol'ed entity and the ne. entity are treated under this Act as one and the
same unless the *A% ,ommissioner6 ha'in( re(ard to the circumstances of the
case6 other.ise directs.
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03. eath or in'ol3enc, o( ta)a+le per'on.
After the death of a taxable person or the se9uestration of the estate of a taxable
person B
?a@ .here a taxable acti'ity pre'iously carried on by the taxable person
is carried on by6 or on behalf of6 the executor or trustee of the
person7s estateC or
?b@ .here anythin( is done in connection .ith the termination of the
taxable acti'ity6
the estate of the taxable person6 as represented by the executor or trustee6 is
under this Act treated as the taxable person in respect of the taxable acti'ity.
0&. Mort4a4ee in po''e''ion< tr-'tee.
?1@ -or the purposes of this Act6 a mort(a(ee in possession B
?a@ of land or other property pre'iously mort(a(ed by a mort(a(or .ho
is a taxable personC and
?b@ .ho carries on a taxable acti'ity in relation to the land or other
property6
is the taxable person carryin( on the taxable acti'ity B
?i@ from the date the mort(a(ee too3 possession of the land or
other propertyC
?ii@ until such time as the mort(a(ee ceases to be in possession of
the land or other property.
?2@ A person .ho is a trustee in more than one capacity is6 under this Act6 a
separate person in relation to each capacity.
0*. #ariation o( co't on a chan4e in #AT rate.
?1@ A re(istrant .ho enters into an a(reement to ma3e a supply of (oods or
ser'ices B
?a@ .hich is not a taxable supply6 or6 is a taxable supply borne at a
specific rateC and
?b@ .here subse9uent to enterin( into the a(reement6 the supply of the
(oods or ser'ices becomes a taxable supply6 or 'alue added tax is
imposed on the supply at an increased rate6
is liable for and must reco'er from the recipient of the supply6 unless the
a(reement expressly pro'ides to the contrary6 the additional amount e9ual
to the amount of tax imposed6 or the amount by .hich tax .as increased6
on the supply.
?2@ A re(istrant .ho has entered into an a(reement to ma3e a taxable supply
.here6 subse9uent to enterin( into the a(reement6 'alue added tax is
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imposed on the supply at a reduced rate6 or the supply is no lon(er
classified as a taxable supply6 must unless the a(reement expressly
pro'ides to the contrary reduce the amount payable by the recipient of the
supply by an amount e9ual to B
?a@ the amount by .hich tax .as decreased on the supplyC or
?b@ the amount of tax .ithdra.n in relation to the supply.
?3@ Subsections ?1@ and ?2@ apply to a supply .hich is sub4ect to a fee char(e
or other amount B
?a@ .hether or not a fixed6 maximum6 or minimum fee char(e or other
amountC and
?b@ not.ithstandin( such fee char(e or other amount is prescribed by or
determined pursuant to a pro'ision of any other la.6
so that the fee6 char(e or other amount may be increased or decreased6 as
the case may be6 in accordance .ith those subsections except .here B
?i@ such other la. ta3es into account an imposition6 'ariation or
.ithdra.al of *A% under this ActC or
?ii@ the fee char(e or other amount to .hich the supply is sub4ect
is calculated as a fraction or percenta(e of an amount .hich
represents the consideration in money for a taxable supply.
?4@ An unre(istered taxable person .ho enters into an a(reement referred to
in subsection ?1@ B
?a@ may not collect tax from the recipient of a supply made by himC and
?b@ remains liable for payment to the ,entral e'enue A(ency of all tax
char(eable in relation to the taxable supply.
0.. Application o( pa,ment'.
%he ,entral e'enue A(ency must apply a payment made by a person6 .here
interest6 a penalty or fine is payable by such person on or in respect of tax
payable by him6 in order of priority to B
?a@ the interestC
?b@ .here payment exceeds the amount of the interest6 the penaltyC and
?c@ .here payment exceeds the amount of the interest and penalty6 the
fineC and
?d@ .here payment exceeds the amount of the interest6 penalty and
fine6 the tax.
0/. Ma9in4 o( (al'e or mi'leadin4 'tatement'.
?1@ A person must not 3no.in(ly or rec3lessly B
?a@ ma3e a statement to the *A% ,ommissioner or a *A% officer that is
false or misleadin( in a material particularC or
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?b@ omit from a statement made to the *A% ,ommissioner or a *A%
officer any matter or thin( .ithout .hich the statement is
misleadin( in a material particular.
?2@ A statement referred to in subsection ?1@ may be made orally6 in .ritin(6
or in any other form to the ,ommissioner or officer actin( in the
performance of their respecti'e duties under this Act and the re(ulations
and includes a statement made B
?a@ in a document or information made6 prepared6 (i'en6 filed6 lod(ed
or furnished under this Act or the re(ulationsC
?b@ in a document or information furnished to the ,ommissioner or
officer other.ise than pursuant to this Act or the re(ulationsC
?c@ in an ans.er to a 9uestion as3ed of a person by the ,ommissioner
or officerC or
?d@ to another person .ith the 3no.led(e or reasonable expectation that
the statement .ould be con'eyed to the ,ommissioner or officer.
00. Remi''ion o( ta).
?1@ %he ,entral e'enue A(ency may by order extin(uish a liability of a
person to pay tax as a debt due to the /o'ernment in any case .here B
?a@ the *A% ,ommissioner is6 after exercisin( the enforcement po.ers
a'ailable to the ,ommissioner under Part I=6 unable to reco'er an
amount of tax6 penalty6 fine or interest due and payable by such
personC
?b@ a minimum period of se'en years ha'e elapsed since the
,ommissioner completed the exercise of the final enforcement
po.er a'ailable to the ,ommissioner in relation to the amount due
and payableC and
?c@ the amount due and payable does not exceed B
?i@ fi'e hundred dollars6 in the case of an indi'idualC and
?ii@ fifteen hundred dollars6 in the case of a person other than an
indi'idual6 .hether a company6 partnership6 trust6
unincorporated or other association.
?2@ %he ,entral e'enue A(ency may re'o3e an order and reinstate a liability
extin(uished under subsection ?1@ .here the *A% ,ommissioner
determines6 .ithin the three year period after the order extin(uishin( the
debt6 that the person .hose debt .as extin(uished has assets that may be
attached to reco'er the unpaid tax6 penalty and interest specified in the
order.
?3@ An order under subsection ?1@6 and a re'ocation under subsection ?2@6
must be made in the form and manner prescribed by re(ulations.
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01. 6ontra3ention o( ta) la7'.
A person must not6 for the the purpose of e'adin( the assessment6 payment6 or
collection of 'alue added tax6 or other.ise impedin( tax administration6
contra'ene or fail to comply .ith any pro'ision of this Act or the re(ulations.
15. 6on(identialit,.
?1@ Sub4ect to this section6 a *A% officer must not6 except in the exercise and
performance of such officer7s po.ers or duties under this Act6 or by order
of a court of competent 4urisdiction B
?a@ disclose to any person any matter in respect of any other person that
may come to such officer7s 3no.led(e in the the exercise and
performance of such po.ers and dutiesC
?b@ permit any person to ha'e access to any records in the possession or
custody of the ,entral e'enue A(ency.
?2@ %he ,ommissioner /eneral6 or the *A% ,ommissioner6 may disclose
documents or information under this Act B
?a@ to any person6 .here such disclosure is necessary for the purposes
of this Act or any other fiscal la.6 .hether or not administered and
enforced by the ,entral e'enue A(encyC
?b@ to a person authorised by any la. in force in %he >ahamas to
recei'e such informationC
?c@ to the competent authority of the (o'ernment of another country
.ith .hich %he >ahamas has entered into an a(reement for the
a'oidance of double taxation or the exchan(e of information6 to the
extent permitted under such a(reement or by any la.C or
?d@ .here such documents or information do not identify a specific
person6 to a person in the ser'ice of the /o'ernment in a re'enue or
statistical department in respect of .hich such disclosure is
necessary for the performance of such person7s official duties.
?3@ A person recei'in( documents or information under subsection ?2@ must
3eep such documents or information secret and confidential6 except to the
minimum extent necessary to achie'e the purpose for .hich the disclosure
is made.
?4@ %he *A% ,ommissioner may use documents or information obtained by
the ,ommissioner in the exercise and performance of the ,ommissioner7s
duties and po.ers under this Act for the purposes of any other fiscal la.s
administered by the 0inister or the ,entral e'enue A(ency.
?5@ %he *A% ,ommissioner may disclose documents or information
concernin( the affairs of a person in relation to 'alue added tax .here B
?a@ the person consents in .ritin( that such disclosure may be made to
another specified personC
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?b@ a person claims to be the taxpayer or the authorised representati'e
of such taxpayer and the ,ommissioner has obtained reasonable
assurance of the authenticity of the claim.
11. Re4-lation'.
?1@ %he 0inister may from time to time ma3e re(ulations for carryin( out all
or any of the purposes of this Act in accordance .ith the po.ers and
duties conferred or imposed on the 0inister by this Act.
?2@ Dithout pre4udice to the (enerality of subsection ?1@6 the 0inister may in
particular ma3e re(ulations prescribin( the B
?a@ form and content of all applications6 notices6 certificates6 returns6
in'oices6 receipts6 notes6 .arnin( letters6 or other documents
re9uired for use under or pursuant to this Act or re(ulations made
under this ActC
?b@ definitions and criteria for determinin( the meanin( of 3ey .ords
and phrases used and not defined in this ActC
?c@ fees payable in respect of ser'ices performed by the *A% +i'ision
under this ActC
?d@ administrati'e procedures6 standards6 and protocols for the
assessment6 payment and collection of tax under this ActC
?e@ method of calculation of input tax deductionC
?f@ documents6 records and other information an applicant for
re(istration under Part I* must submit .ith the applicationC
?(@ content of the public re(ister of re(istrants and the manner in .hich
the re(ister may be rectified6 amended and maintainedC
?h@ offences6 and limitation periods for such offences6 in relation to B
?i@ a contra'ention of or non&compliance .ith a pro'ision of this
Act6 includin( the penalties not exceedin( fi'e hundred
thousand dollars to be imposed for such offencesC
?ii@ a contra'ention of or non&compliance .ith a pro'ision of a
re(ulation made pursuant to this Act6 includin( penalties not
exceedin( three hundred thousand dollars to be imposed for
such offencesC
?i@ re9uirements6 procedures and forms for the imposition of
administrati'e fines6 not exceedin( one hundred fifty thousand
dollars6 imposed pursuant to this Act or re(ulations made pursuant
to this ActC
?4@ methods of displayin( prices of (oods or ser'ices offered by taxable
personsC
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?3@ the pro'iders of professional ser'ices re9uired to re(ister under this
ActC and
?l@ nature of anythin( re9uired under this Act6 or that the 0inister
considers necessary or desirable6 to be prescribed in order to B
?i@ facilitate and illustrate the application and meanin( of
pro'isions or terms used in this ActC and
?ii@ determine the 'alue6 time6 and place of transactions for the
purpose of applyin( this Act to such transactions.
12. Electronic comm-nication'.
An application6 notice6 declaration6 return6 or other form re9uired to be filed6
made6 (i'en or other.ise pro'ided pursuant to this Act or the re(ulations may be
so pro'ided by electronic means in accordance .ith the "lectronic
,ommunications and %ransactions Act ?Ch. 33!"@.
13. Tran'itional pro3i'ion'.
?1@ %he *A% ,ommissioner may6 on and from the date this Act is enacted B
?a@ accept applications from persons6 in such form as the
,ommissioner may determine6 for pro'isional re(istration under
this ActC and
?b@ (rant pro'isional re(istration to a person .ho satisfies the
,ommissioner that such person meets the re9uirements for
re(istration under section 1# or section 1$.
?2@ A pro'isional re(istration does not entitle a re(istrant to the issue of a
certificate of re(istration or to enforce any pro'ision of this Act.
?3@ %he *A% ,ommissioner must6 on the date this Act comes into force6 in
respect of each pro'isional re(istrant B
?a@ issue a certificate of re(istrationC and
?b@ allocate a tax period6 and an effecti'e date of re(istration6
commencin( on the 1
st
day of Auly6 2)14C
?4@ A supplier may B
?a@ .here a contract .as concluded before the entry into force of this
Act and no pro'ision relatin( to tax .as made in such contractC and
?b@ .here the supplier after the entry into force of this Act becomes a
re(istrant and ma3es taxable supplies under the contract6
reco'er from the recipient of a taxable supply made after the entry into
force of this Act the tax due on the supply.
?5@ An unre(istered taxable person may not6 until he is re(istered in
accordance .ith Part I*6 reco'er from a recipient tax due on taxable
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supplies made after the entry into force of this Act but the unre(istered
taxable person remains liable for payment of output tax on such supplies.
?6@ %he contract price6 in relation to a contract concluded after the date this
Act comes into force .hich does not pro'ide for tax6 is deemed to include
tax and a taxable person .ho ma3es a taxable supply under such contract
must pay and account for output tax char(eable on the supply.
?!@ Sub4ect to subsection ?$@6 a payment in connection .ith a taxable supply
is6 for the purpose of determinin( the tax period in .hich the supply
occurs or an input tax deduction is allo.ed6 treated as made or an in'oice
as issued on the date this Act comes into force .here B
?a@ title to the (oods passes6 or deli'ery of the (oods is made6 or
ser'ices are rendered6 after the date this Act comes into forceC and
?b@ payment is recei'ed6 or an in'oice is issued6 .ithin a period of six
months before the date this Act comes into force.
?#@ %ax is imposed6 in relation to a taxable supply referred to in subsections
?#@ and ?16@ of section 31 .hich is made periodically or successi'ely B
?a@ sub4ect to para(raph ?b@6 on the portion of the consideration that
relates to a supply made after the date this Act comes into forceC
and
?b@ .here the consideration for a supply made before the date this Act
comes into force is paid more than four months after the date this
Act comes into force6 on such consideration .hich is treated as
consideration for a supply made on the day after the end of the four
month period.
?$@ 2ot.ithstandin( subsection ?#@6 tax is imposed B
?a@ .here a .ritten a(reement for the supply of construction (oods and
ser'ices is executed before the date this Act comes into forceC and
?b@ .here the ser'ices are performed and the (oods or property made
a'ailable to the recipient after the date this Act comes into force6
only on the 'alue of the supply made or performed after the date this Act
comes into force if the 'alue of the supply on the day prior to this Act
comin( into force is B
?i@ determined in a manner appro'ed by the *A% ,ommissionerC
and
?ii@ submitted to the ,ommissioner by the end of the re(istrant
supplier7s first tax period after this Act comes into force.
?1)@ %he consideration for a rental of real property under a rental a(reement6
for a period commencin( before and endin( after the date this Act comes
into force6 does not include the amount attributable to the portion of the
period that ends before the date this Act comes into force.
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?11@ A person .ho .ill on the date this Act comes into force be a taxable
person must6 a minimum of t.o months prior to such date6 apply for
pro'isional re(istration under subsection ?1@.
?12@ -or purposes of this re(ulation6 a contract is concluded .hen the parties
execute the contract.
?13@ ;otel boo3in(s concluded before the comin( into force of this Act are not
sub4ect to *A% until such time as the repeal of sections 166 1!6 1# and 2)
of the ;otels Act ?Ch. 288@ in respect of the hotel (uest tax ta3es effect.
1&. Repeal'.
Sections 166 1!6 1# and 2) of the ;otels Act ?Ch. 288@ are repealed.
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Schedule *A:1" A++"+ %A= >I::6 2)13
FIRST S+.EDULE 4Se#$!n 35
DERO RATED SU&&LIES AND IM&ORTATIONS
&ART I
DERO RATED SU&&LIES OF GOODS
1. "xports .here B
?1@ the re(istrant supplier has entered the (oods for export in accordance .ith
the ,ustoms 0ana(ement Act and the (oods are6 in fact6 exported by the
re(istrant supplierC and
?2@ the *A% ,ommissioner is satisfied that the (oods ha'e been exported
from %he >ahamas and .ere not used after they .ere entered for export
except such use as .as necessary for6 or incidental to6 the export of the
(oods.
2. A supply of (oods .here the (oods are not B
?1@ situated in %he >ahamas at the time of supplyC and
?2@ to be entered by the re(istrant supplier for home consumption in
accordance .ith the ,ustoms 0ana(ement Act.
3. A supply of (oods6 used exclusi'ely in an export country6 under B
?1@ a rental a(reementC
?2@ a charter partyC or
?3@ an a(reement for charterin(.
4. A supply of (oods in the course of repair6 reno'ation6 modification6 or treatment6
of (oods to .hich subsubpara(raphs ?b@ or ?c@ of sub&para(raph ?2@ of para(raph
1 of Part II applies .here the (oods supplied B
?1@ are .rou(ht into6 affixed or attached to6 or other.ise form part of
those (oods to .hich subsubpara(raph ?b@ or subsubpara(raph ?c@ appliesC
or
?2@ bein( consumable (oods6 become unusable or .orthless as a direct result
of bein( used in such repair6 reno'ation6 modification6 or treatment
process.
5. A supply by a re(istrant to another re(istrant of a taxable acti'ity6 or part of such
acti'ity6 as a (oin( concern .here the pro'isions of this Act and the re(ulations
are satisfied.
6. A supply of (oods in the course of repairin(6 reno'atin(6 modififyin(6 or treatin(
B
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?1@ (oods temporarily imported into %he >ahamas under the ,ustoms
0ana(ement ActC and
?2@ forei(n&(oin( 'essels and aircraft.
&ART II
DERO RATED SU&&LIES OF SERVI+ES
1. A supply of ser'ices directly B
?1@ in connection .ith land6 or an impro'ement to land6 situated outside %he
>ahamasC
?2@ in respect of B
?a@ personal property situated outside %he >ahamas at the time the
ser'ices are renderedC
?b@ (oods temporarily imported into %he >ahamas pursuant to the
,ustoms 0ana(ement ActC or
?c@ the repair6 maintenance6 cleanin(6 outfittin(6 refurbishment6 or
impro'ement of a forei(n&(oin( aircraft or forei(n&(oin( 'essel.
2. A supply of frei(ht and insurance directly attributable to a supply of (oods
exported from the >ahamas in accordance .ith re(ulation 2.
3. A supply of ser'ices to a person resident outside %he >ahamas .ho is not a
taxable person .here such supply is made directly6 and not made throu(h an
a(ent or other person6 and comprises B
?1@ the stora(e6 repair6 maintenance6 cleanin(6 mana(ement6 or arran(in( the
pro'ision of a container temporarily imported under section &&& of the
,ustoms 0ana(ement ActC or
?2@ arran(in( the supply of a ser'ice referred to in sub&para(raph ?1@.
4. A supply of ser'ices by B
?1@ a port authority6 .ithin the meanin( of section 2 of the Port Authorities
Act ?Ch. 26#@6 to a forei(n&(oin( 'esselC or
?2@ the mana(er of an airport to the o.ner or operator of a ship or aircraft
.here B
?a@ such o.ner or operator is a person resident outside %he >ahamas
.ho is not a re(istrantC
?b@ the ship or aircraft is used by such o.ner or operator in
international commercial ser'iceC and
?c@ the supply of ser'ices is for consumption or use in connection .ith
such ship or aircraft.
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Schedule *A:1" A++"+ %A= >I::6 2)13
5. A supply of ser'ices to a person resident outside %he >ahamas .ho is not a
taxable person comprisin( the arran(ement for such person of an export from
%he >ahamas of mo'able (oods in accordance .ith the re(ulations.
6. A supply of ser'ices to a telecommunication carrier not conductin( business in
%he >ahamas comprisin( the transmission of calls and other telecommunication
ser'ices throu(h %he >ahamas B
?1@ that ha'e their ori(in and destination outside %he >ahamasC
?2@ that are not for the consumption or use of persons in %he >ahamasC and
?3@ .here the re(istrant supplier does not char(e an interconnection fee for
pro'idin( the ser'ices.
!. A supply of international transport ser'ices determined in accordance .ith the
re(ulations.
#. A supply by a re(istrant supplier to a re(istrant recipient of a taxable acti'ity6 or
part of a taxable acti'ity6 as a (oin( concern .here B
?1@ the supply complies .ith sections 25?2@6 2#?2@ and 3)?#@ of the ActC
?2@ a notice in .ritin( si(ned by the transferor and transferee is furnished to
the *A% ,ommissioner .ithin t.enty&one calendar days after the supply
ta3es placeC and
?3@ the notice referred to in sub&para(raph ?2@ contains the details of the
supply.
$. A supply of professional ser'ices listed belo. to the extent that such ser'ices6 in
accordance .ith the place of supply rules pursuant to this Act and the
re(ulations6 are used or the benefit or ad'anta(e is obtained outside %he
>ahamas B
?a@ :e(al ser'ices la.yers6 barristers and solicitors
?b@ "n(ineerin(6 architectural architects6 sur'eyors6 en(ineers6
ser'ices and sur'ey ser'ices draftsmen
?c@ ,onsultancy ser'ices a business renderin( consultancy
ser'ices and not re(istered as a
company
?d@ "n(ineerin( ser'ices a business renderin( en(ineerin(
ser'ices
?e@ Accountancy ser'ices certified or chartered public
accountants or auditor accountants
?f@ Insurance ser'ices insurance ad4uster6 assessor6 a(ent
or any other business carryin( on
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*A:1" A++"+ %A= >I::6 2)13 Schedule
the business of insurance and is not
re(istered as a company
?(@ Ad'isory ser'ices a business renderin( ad'isory
company
?h@ Professional ser'ices a business6 not .ithin cate(ories ?a@
throu(h ?(@6 renderin( professional
company
1). A supply of ser'ices comprisin( B
?1@ %he filin(6 prosecution6 (rant6 maintenance6 transfer6 assi(nment6
licensin(6 or enforcement of any intellectual property ri(hts for use
outside %he >ahamas.
?2@ Incidental ser'ices necessary for the supply of ser'ices referred to in
para(raph ?1@.
?3@ %he acceptance by a person of an obli(ation to refrain from pursuin( or
exercisin(6 in .hole or in part6 any intellectual property ri(hts for use out&
side %he >ahamas.
11. International ser'ices6 includin( financial ser'ices6 pro'ided to a person treated
as a non&resident for purposes of the "xchan(e ,ontrol e(ulations
1
.
1
Su$. %e&'()ol )*( Ch. 360
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Schedule *A:1" A++"+ %A= >I::6 2)13
SE+OND S+.EDULE 4Se#$!n 35
S&E+IAL RATED SU&&LIES
,;A/"A>:" %5 *A% A% A%" 5- 1)L
A supply made in accordance .ith the re(ulations by a hotel or similar establishment
re(istered and licensed by the ;otel :icensin( Authority consistin( of B
?a@ accommodationsC
?b@ ser'ices included in the room rate for accommodationsC and
?c@ food and be'era(es rendered .ithin the hotel or similar establishment.
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*A:1" A++"+ %A= >I::6 2)13 Schedule
T.IRD S+.EDULE 4Se#$!n *5
EXEM&T SU&&LIES AND IM&ORTATIONS
&ART I
EXEM&T SU&&LIES OF GOODS
>o'ine animal meat
,hic3en
Por3
SheepJ(oatJhorse meat and edible offal of these
0eatJ"dible offal6 salted6 dried6 in brine6 smo3ed
Sausa(es and similar products
Prepared or preser'ed meat for infant use
Sand.ich meatM tur3ey6 ham6 corned beef6 roasted beef
-ish6 prepared and preser'ed fish in airti(ht containers
-resh mil36 mil3 products6 cheese
,oncentrated N "'aporated mil3Jcream6 or containin( added sua(arJs.eetener
>utter6 dairy spreads
*e(etables6 fresh and fro8en
-resh fruits
ice6 fonio6 9uinoa6 triticale
-lour
,ereals
,ereal (roats6 meal and pellets
,ereal (rains other.ise .or3ed ?fla3ed6 rolled6 etc.@
Soybean oil6 crude6 .hether or not de(ummed
/round nut oil6 oli'e oil6 other oils and their fractions
5ils ?Palm6 sunflo.erJsafflo.er6 cottonseed6 cocnutJpalm 3ernel6 rape6
mustard6 other 'e(etable fats@
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Schedule *A:1" A++"+ %A= >I::6 2)13
,astor oil and sesame oil and their fractions
0ar(arine6 imitation lard6 shortenin(
,ane su(ar6 beet su(ar6 .hether or not containin( fla'ourin(Jcolourin(
Dhite su(ar
>read
Preparations for infant use ?cereal6 flour6 starch6 mil3@
2oodles6 couscous6 bul(ur .heat6 bread
Pac3a(ed for infant useM 'e(etables6 4ams6 4ellies6 fruit 4uics
0ustard flour and meal6 prepared mustard
0ayonnaise
Soups and broths
0ineral .aters pac3a(ed for infant use
:aundry deter(ent ?:i9uid6 po.der@6 dish.ashin( li9uid
Soaps
"lectricity6 in accordance .ith the limits prescribed by re(ulations
Dater6 in accordance .ith the limits prescribed by re(ulations
&ART II
EXEM&T SU&&LIES OF SERVI+ES
An exempt supply of ser'ices is a supply of6 or a transaction comprisin( B
?1@ Insurance ser'ices in the course of carryin( on an insurance business in or
from %he >ahamas performed by persons permitted to perform such
ser'ices under or pursuant to the Insurance Act ?Ch. 34!@.
?2@ Sub4ect to the re(ulations6 financial ser'ices other than B
?a@ international financial ser'icesC or
?b@ domestic financial ser'ices pro'ided for an explicit fee.
?3@ 0edical ser'ices includin( the ser'ices of a re(istered optometrist.
?4@ "ducation ser'ices.
?5@ %he sale6 or rental6 of a d.ellin(6 includin( land attributable to such
d.ellin(.
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*A:1" A++"+ %A= >I::6 2)13 Schedule
?6@ %he transfer of 'acant residential land.
?!@ A lease of land to the extent that such land is principally used6 or intended
for use6 for accommodation as a d.ellin( .hich is erected or to be
erected on such land.
?#@ Any ser'ices by a ministry6 department6 statutory body6 a(ency6 local
(o'ernment council6 or other entity of /o'ernment6 in connection .ith a
taxable acti'ity .here the consideration for such ser'ices is B
?a@ nominal in amountC or
?b@ not intended to reco'er the cost of such (oods or ser'ices.
?$@ Ser'ices rendered by a daycare business6 includin( the pro'ision of after&
school care.
?1)@ +omestic transportation of passen(ers by land or .ater6 other than in
connection .ith a tour.
?11@ Ser'ices pro'ided directly by a facility to persons in need of care6 bein(
persons .ho are B
?a@ a(edC
?b@ indi(entC
?c@ infirmC
?d@ disabledC
?e@ handicapped.
?12@ Ser'ices directly6 and not throu(h an a(ent or other person6 to a person
resident outside %he >ahamas .ho is not a taxable person B
?a@ comprisin( the handlin(6 pilota(e6 sal'a(e6 or to.a(e6 of any
forei(n&(oin( aircraft .hile situated .ithin %he >ahamasC or
?b@ pro'ided in connection .ith the operation or mana(ement of any
forei(n&(oin( aircraft or forei(n&(oin( 'essel.
?13@ eli(ious ser'ices by an institution of reli(ious .orship.
?14@ Ser'ices by a reco(ni8ed charity to the extent that such ser'ices relate
directly to the charitable function of the charity.
?15@ /ames of chance6 (amblin( and lotteries .ithin the meanin( of the
:otteries and /amin( Act (Ch. 38!@.
&ART III
EXEM&T IM&ORTS OF GOODS
1. An import of (oods listed in Part I of this Schedule.
2. An import of (oods B
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?1@ intended as an unconditional (ift to an appro'ed charitable
or(anisation6 other than for purposes of re&sale by such
or(anisationC and
?2@ .here the ,omptroller of ,ustoms is in receipt of a .ritten
notification from the *A% ,ommissioner6 prior to entry of such
(oods6 that the (oods are to be exempt from a char(e of *A%.
3. An unconditional (ift of (oods6 other than for purposes of re&sale6 consi(ned to
the /o'ernment6 or a ministry6 department6 statutory body6 a(ency6 local
(o'ernment council6 or other entity of /o'ernment6 .here the ,omptroller of
,ustoms has .ritten notification from the *A% ,ommissioner6 prior to entry of
such (oods6 that the (oods are to be exempt from a char(e of *A%.
4. An import that is a $on fide6 unsolicited (ift .hich B
?1@ does not exceed one thousand dollars in 'alueC
?2@ is not contained in a passen(er7s ba((a(eC and
?3@ does not comprise .ine6 spirits or manufactured tobacco.
5. /oods .hich are shipped or con'eyed to %he >ahamas for transshipment or
con'eyance to another country.
6. Sub4ect to the re(ulations6 (oods imported by a national .ho is returnin( home
for permanent residence6 limited to B
?1@ ne. or used household and personal effects ?other than buildin( material@6
includin( B
?a@ a tele'isionC
?b@ a home entertainment system6 +*+6 *, or e9ui'alent de'iceC
?c@ a stereo systemC
?d@ a refri(eratorC
?e@ a coo3erJsto'e ran(eC
?f@ a .ashin( machine and dryerC
?(@ a micro.a'e o'enC
?h@ a free8erC
?i@ a laptop or des3top computer and printerC and
?4@ other items as published by the ,entral e'enue A(encyC
?2@ one ne. or used motor 'ehicle.
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*A:1" A++"+ %A= >I::6 2)13 5b4ects and easons
OB2E+TS AND REASONS
%he purpose of the >ill is to reform the tax system in %he >ahamas throu(h the
imposition6 assessment and collection of 'alue added tax on the supply and importation
of (oods and ser'ices.
,lause 1 of the >ill pro'ides (enerally for the Act to come into force on 1
st
Auly 2)14
but also empo.ers the 0inister to appoint a different day for section $6 of the Act to
come into force.
,lause 2 defines 3ey .ords and phrases and interprets specific transactions.
,lause 3 of the >ill pro'ides for the application of the Act throu(hout %he >ahamas6
and to the /o'ernment and /o'ernment entities6 exceptin( only exempt transactions6
exempt persons6 employment contracts and transactions fallin( .ithin section 2 of the
;a.3sbill ,ree3 A(reement.
,lause 4 imposes 'alue added tax and ma3es it char(eable on all taxable supplies made
by taxable persons and on all taxable importations made by any person.
,lause 5 identifies the persons liable to pay and account for *A% and mandates
payment to the ,entral e'enue A(ency.
,lause 6 pro'ides for three different rates of *A%6 bein( a standard rate of 15L6 special
rate of 1)L6 and a 8ero percent rate6 on the supply and import of (oods and ser'ices set
out in the Schedules.
,lause ! pro'ides for (oods and ser'ices .hich are exempt supplies and exempt
importations not char(eable to *A%.
,lause # pro'ides for exempt persons to pay *A% on certain exempted supplies and
imports and to claim a refund of the tax paid.
,lause $ pro'ides for prices to be 9uoted exclusi'e of *A% and for *A% to be
presumed to be included in the price a taxable person char(es to consumers.
,lause 1) pro'ides for interest on unpaid tax to be treated as tax.
,lauses 11 to 13 of the >ill (i'e responsibility for the administration and enforcement
of the Act to the ,entral e'enue A(ency actin( throu(h the *A% +i'ision and pro'ide
for the functions and po.ers of the *A% ,ommissioner and *A% officers.
,lause 14 empo.ers the ,ommissioner /eneral to authorise the *A% ,ommissioner to
allo. claims for input tax deduction in respect of in'estments made by a re(istrant
.ithin the t.o years prior to re(istration.
,lauses 15 to 1! empo.er the ,entral e'enue A(ency to impose administrati'e fines6
issue *A% /uidelines and the *A% ,ommissioner to issue .arnin( letters and ad'ance
*A% rulin(s.
,lauses 1# pro'ides for mandatory re(istration by taxable persons meetin( the
Pa(e & $5
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"xplanatory 2otes *A:1" A++"+ %A= >I::6 2)13
re(istration threshold and empo.ers the ,ommissioner to compulsorily re(ister
taxable person .ho do not apply as re9uired for re(istration.
,lause 1$ pro'ides for persons not meetin( the re(istration threshold .ho .ish to be
re(istered for *A% to apply for 'oluntary re(istration.
,lause 2) establishes the re(istration threshold at H1))6))) (enerally and at H5)6)))
in specified cases..
,lauses 21 to 23 pro'ide the re9uirements and conditions for application and the (rant
of re(istration and places restrictions on unre(istered taxable persons.
,lauses 24 and 25 impose a duty on a re(istrant to prominently display the re(istration
certificate at each location of his business and to notify the *A% ,ommissioner of
chan(es in the re(istrant7s circumstances.
,lause 26 pro'ides for the cancellation and suspension of re(istration.
,lause 2! pro'ides for the establishment of the re(ister of *A% re(istrants by the
,ommissioner and for the re(ister to be open to the public.
,lauses 2# and 2$ pro'ide rules in relation to the supply of (oods and ser'ices.
,lause 3) pro'ides rules for the treatment of supplies of (oods and ser'ices in special
cases.
,lauses 31 and 32 pro'ide rules relatin( to the time a supply occurs and the place
.here a supply occurs.
,lause 33 pro'ides for the supply from a place of business .ithin %he >ahamas of
certain (oods and ser'ices6 .here the benefit or ad'anta(e is en4oyed in a place outside
%he >ahamas6 to be treated as a supply of (oods or ser'ices made in and exported from
%he >ahamas for the purposes of *A%.
,lauses 34 and 35 pro'ide for the method of calculation of the 'alue of6 and the
consideration for6 a taxable supply.
,lause 36 pro'ides rules in relation to the 'alue of taxable supplies.
,lause 3! pro'ides for the treatment of hotel accommodation as a special supply.
,lauses 3# and 3$ pro'ide rules in relation to the time of import of (oods and ser'ices
and in respect of mixed imports.
,lauses 4) and 41 pro'ide for the method of calculation of the 'alue of6 and
consideration for6 a taxable importation.
,lauses 42 to 44 pro'ide rules in relation to the 'alue of a taxable import and the
payment of tax for taxable imports of (oods and ser'ices.
,lauses 45 to 4! pro'ide for the calculation of tax payable includin( tax payable by
re(istrants6 unre(istered taxable persons and auctioneers.
,lause 4# pro'ides for rules relatin( to a claim to input tax deduction.
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*A:1" A++"+ %A= >I::6 2)13 5b4ects and easons
,lauses 4$ and 5) pro'ide for post&supply ad4ustments to output tax includin( the case
of bad debt .rite&off by a re(istrant.
,lauses 51 and 52 pro'ide for the use of *A% in'oices6 *A% sales receipt6 tax debit and
credit notes.
,lause 53 to 55 pro'ide carry for.ard rules for excess credits6 payment of interest on
o'erpayment and refund of tax.
,lauses 56 pro'ides for re(istrants to ma3e monthly *A% returns to the ,ommissioner.
,lauses 5! and 5# pro'ide rules for the ma3in( of assessments by the ,ommissioner
and the use of an assessment and other *A% documents as e'idence in proceedin(s.
,lauses 5$ (i'es broad in'esti(atory po.ers to the ,ommissioner and *A% officers.
,lause 6) (i'es *A% officers direct po.ers of entry and sei8ure.
,lause 61 empo.ers the ,ommissioner to re9uire a taxpayer to pro'ide security.
,lause 62 to 64 (i'e the ,ommissioner po.ers to sei8e (oods and 'ehicles liable for
unpaid tax and to enter and execute distress on premises for unpaid tax.
,lauses 65 prohibits a re(isterin( authority from re(isterin( certain (oods6 re9uirin( a
permit or licence of some 3ind6 until payment of tax.
,lause 66 empo.ers the ,ommissioner to reco'er tax from a fraudulent recipient of a
taxable supply.
,lause 6! empo.ers the ,ommissioner to re9uire an a(ent of a person liable for tax to
pay to the ,ommissioner money held on account of the taxpayer.
,lause 6# pro'ides for a recei'er to notify the ,ommissioner of his recei'ership and to
set aside out of the taxpayer7s assets6 at the ,ommissioner7s re9uest6 sums to co'er tax.
,lause 6$ empo.ers the ,ommissioner to declare certain persons as a representati'e
of a taxable person thereby ma3in( them liable to perform the duties of the taxable
person under this Act.
,lause !) empo.ers the ,ommissioner to 'oid fraudulent schemes by persons for
obtainin( tax benefits.
,lause !1 pro'ides for the 4oint liability of a director or similar officer of a company to
pay *A%.
,lause !2 empo.ers the *A% ,ommissioner to apply to the e'enue ,ourt for closure
of business premises.
,lause !3 pro'ides for the publication of the names of *A% defaulters.
,lauses !4 and !5 mandate the 3eepin( of reliable accountin( records for a period of
se'en years and the nature of the records to be 3ept.
,lause !6 pro'ides for a person to appeal a decision of the *A% ,ommissioner to the
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"xplanatory 2otes *A:1" A++"+ %A= >I::6 2)13
,ommissioner /eneral.
,lauses !! to !$ pro'ide for an ob4ector to appeal a decision of the ,ommissioner
/eneral to the Appeals Panel6 and the hearin( of an appeal by the Appeals Panel6 and
an appeal from the Panel to the e'enue ,ourt.
,lause #) pro'ides for inclusion of the *A% I+ number in *A% documents.
,lauses #1 to #4 pro'ide special rules relatin( to officers of unincorporated bodies and
associations6 dissolution of partnerships and other unincorporated bodies6 mort(a(ees
in possession6 and trustees.
,lause #5 pro'ides rules relatin( to the 'ariation in cost of supplies on a chan(e in the
*A% rate.
,lause #6 pro'ides rules of priority for the application of payments.
,lause #! prohibits the ma3in( of false or misleadin( statements.
,lause ## pro'ides for the remission of tax by the ,entral e'enue A(ency.
,lause #$ prohibits contra'ention of tax la.s.
,lauses $) mandates the maintenance of confidentiality and secrecy in relation to
information recei'ed by persons in the administration and enforcement of this Act.
,lause $1 empo.ers the 0inister to ma3e re(ulations.
,lause $2 pro'ides for the use of electronic communications.
,lauses $3 and $4 pro'ide for transitional rules and for the repeal of pro'isions of
certain enactments.
Pa(e & $#
DRAFT

(Draft) VAT Bill - Bahamas

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