VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in the Bahamas. VAT is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Where an e-commerce and telecommunications service provider (such as Zoom), whether domiciled outside or within the Bahamas, makes supplies for the use, enjoyment, benefit or advantage of persons within the Bahamas, there is a requirement for Zoom to register for, collect and remit VAT on all supplies made to customers in the Bahamas. Under the current legislation, there is no differentiation between supplies to business customers (B2B) and supplies to non-business customers (B2C).
Zoom is registered for VAT in the Bahamas as a non-resident supplier of digital services. As such, Zoom is required to collect and remit VAT on all supplies made to customers in the Bahamas.
A Tax Identification Number (TIN) or VAT registration number is a 9 digit number issued by the Bahamas tax authorities to taxpayers in the Bahamas. Where you have provided your TIN, it will be displayed on invoices issued to you by Zoom.
To provide your TIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Note: You are required to notify us if there is a change to your VAT status.
Yes. Zoom’s TIN will be shown on the invoice it issues to you.
Zoom will treat any customers with a ‘Sold To’ address in the Bahamas as being resident in the Bahamas. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.
No. All supplies of electronically supplied services to customers in the Bahamas are subject to Bahamas VAT.
Yes. VAT applies to all the supplies that Zoom makes to customers in the Bahamas.
No. The customer in principle has no VAT obligations. If you are registered for VAT in the Bahamas and you want to claim an input tax credit for the VAT paid to Zoom, as a minimum, you should ensure to keep a copy of Zoom’s invoice for your records.
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in the Bahamas. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.