Nassau, Bahamas -
Since the rollout of VAT at the start of this
year, many charitable organizations in The Bahamas have successfully registered
for VAT and are operating with ease. However, it is important that all such
organizations be aware of the VAT exemptions that may apply to their events as
the work that charities do in The Bahamas is vital for the health and wellbeing
of our nation.
Public attendance at organized charitable
events is exempt from VAT. Exemption is without limit if the items sold for the
fundraisers are donated. If the
organizers buy and then resell the goods for the event, VAT will only have to
be charged if revenue raised in this fashion is expected to
exceed $50,000 per year. Such organizers though would also qualify for
VAT credits on their fundraising expenses.
Included in the list of recognized
charities are social and community programs supported by churches, civic groups
The Ministry of Finance also recognizes
daycare centers, schools and similar facilities operated by churches as
“We encourage all Bahamians to support
charitable activities” said Minister of State for Finance, Michael Halkitis. “Thus
we will ensure their full donations are used to support their cause of choice”.
The procedure for registering a fundraiser
with the VAT Department is integrated with obtaining occasion business
licenses, which includes permits issued by the Public Health Department, Police
and Ministry of Works. In most cases the registration will result in a
confirmation that the event is exempt.
A spokesperson for the VAT Department
also explained that ticket sales for virtually all private family events such
as cookouts for medical expenses and school fees are be exempt, since they
would not be expected to raise more than $50,000 per year.
The Ministry of Finance and the VAT
Department are working hard to ensure a smooth implementation of VAT. A
representative from the VAT department stated “we are pleased with the smooth
rollout of VAT and we are here to help charities understand which of their
activities are subject to the 7.5% VAT tax.”
For more information visit
or look up VATBahamas on Facebook, Twitter, Youtube and Instagram.
To contact the VAT Department directly, please send an email to firstname.lastname@example.org or call
VAT Client Services at (242) 225-7280.