Bahamas Tackling Fuel Duty, VAT Evasion
by Mike Godfrey, Lowtax.net, Washington
06 March, 2015
The Bahamas Government has announced that new administrative procedures will be put in place to monitor bonded fuel supplies, to ensure that value-added tax (VAT) and customs duty are collected if due.
Port licensees can purchase bonded fuel for business use, on certain conditions, without having to pay VAT. Otherwise, fuel is subject to both VAT and customs duty.
The Ministry of Finance, Customs, and VAT Department now intends to establish audit procedures to track the use of bonded fuel supplies. The Government considers this preferable to licensees paying VAT upfront and then claiming a credit or refund.
A Ministry of Finance spokesperson said: "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. In the coming days we will begin our discussions with the fuel distributors in the [Freeport] Port Area to perfect these systems."
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