Bahamas - The
Ministry of Finance and VAT Department announced that new administrative
procedures will be put in place to monitor bonded fuel supplies in the Freeport
Area. “We will be working with petroleum
distributors to track fuel sales, so that the proper follow up can be done to
verify that purchases are for business and not personal use,” a spokesperson
A Port Licensee can purchase bonded fuel
without having to pay VAT on such supplies. However, the benefit is only to be
provided for use within the business.
Bonded supplies that are not used within the business are liable for
both the VAT and customs duties.
Going forward, the Ministry of Finance, Customs
and the VAT Department will establish audit procedures to track the use of
bonded fuel supplies. These procedures
will be explored instead of considerations to have licensees pay the VAT and
then claim a credit or refund. Use of
the credit and refund policy has been suspended.
The Ministry of Finance
spokesperson added that “in the coming days we will begin our discussions with
the fuel distributors in the Port Area to perfect these systems.”
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