Finance: No VAT on Amazon and eBay purchases

Finance: No VAT on Amazon and eBay purchases
Acting Financial Secretary, Marlon Johnson.

NASSAU, BAHAMAS — Acting Financial Secretary Marlon Johnson yesterday clarified that goods brought into the country will only be taxed at the point of entry, as concerns have surfaced on social media that taxes may also be levied on online purchases from online marketplaces such as Amazon and eBay.

Johnson said: “Goods brought into The Bahamas will only be taxed at the point of entry into the country as is done today.  Thus, goods bought from Amazon or eBay will not attract VAT by those companies.”

“By existing law (not anything new) all services consumed in the country are subject to VAT provided the vendor meets the minimum $100,000 per annum threshold for sales inside the country.

He said: “The Department of Inland Revenue has been working to ensure that the online vendors are aware of the laws of the country which is similar to most other countries where VAT or other sales tax is applied. As they become aware and work through their internal processes, they tend to comply without issue.”

Beginning November 1, Facebook ads in The Bahamas will be subject to a 12 percent value-added tax (VAT).

Johnson recently noted that the move would put Facebook and other online operators on “even footing” with Bahamian companies offering marketing services inside the Bahamas who have to charge the necessary VAT.

Facebook has announced the tax applies to advertisers whose “Sold To” country of their business or personal address is set to The Bahamas.

7 comments

I bought an item on ebay for $39 the company i bought from had it shipped through DHL where i paid $205 for shipping then DHL charged $89 for duty & vat…………..all of that for a $39 item

Never ship from eBay or amazon using dhl or Fedex. Use a forwarding company such as sonic express. Iv been shipping thru them for many years. The cost will be drastically reduced by using one of these companies

The whole customs department needs an overhaul. Shipping anything to The Bahamas is such a hassle and items take an eternity to clear customs. Knock knock you hear that Bahamas? It’s the 21st century! Catch up or be left behind.

I think the seller overcharged you for the shipping as well. If you used a credit card to pay, dispute the charge with the credit card company. Some banks insist that you speak to a supervisor at the selling company to try to resolve ths issue with them first. If no supervisor is available, insist that she/he calls you back. If you do not get a return call within 2 business days, you have met all the usual requirements for disputing a CC charge at any reputable bank. Good luck.
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