Accounting For Vat: The Bahamas

The Bahamas
ACCOUNTING FOR VAT

Detailed Plan
FLOW CHART
SAMPLE INPUT TAX WORK SHEET
SAMPLE OUTPUT TAX WORK SHEET
VAT ACCOUNT
VAT RETURN
WORKING PAPERS
NBExcel formulas are included in all sample worksheets that will populate fields within
the VAT Account and VAT Return form
To be used as a guide - demonstrating the flow of VAT transactions from the source doucments to the
VAT return
OUTPUT
INPUT
SUPPLIES FROM ALL

SOURCES
DOMESTIC TAXABLE
SUPPLIES RECEIVED
IMPORTS
TAX INVOICE & OTHER

INVOICES
TAX INVOICES
Custom Document
VAT ACCOUNT
OUTPUT TAX
INPUT TAX WORKSHEET
WORKSHEET
VAT RETURN
ADJUSTMENTS
ADJUSTMENTS
DEBIT NOTE; CREDIT NOTE;

BAD DEBT RECOVERY;
ERRORS
DEBIT NOTE; CREDIT NOTE;

BAD DEBT; ERRORS
ACCOUNTING FOR VAT

FLOW CHART
Input tax as per Mixed/partial Activity

Input tax on
supplies/Importation
Exempt
supplies
Taxable (including Zerorated)
Input tax allowable
Input tax not

allowable
General overheads &

Others not directly
attributable to taxable or
exempt supplies
apportion as per
formula
A x ( B / C)
where A = NA
B = taxable supplies
C = total supplies
Tax on specific items

not allowable
INV: 370
ISLAND PURIFIED WATER
PO Boxes 891, any Place, Nassau
Tel: (000) 466-7517. Fax (000) 466-2862
email: islandpurified water@yahoo.com
TIN: 000012345
TAX INVOICE
CUST. ORDER NO. 8826
DATE: Sept. 6, 2015
NAME: Tax Reform Unit

ADDRESS:
CUSTOMER TIN #:
A/C #
Sold By:
Cash
Quantity
DESCRIPTION
COD
Charge
On Acct MD SERTDPaid Out

Price
2 Case 5 gallon bottle water

3 cone cup
14.00
12.00
Amount
28.00
36.00
$68.80
Total
VAT @ 7.50%
Total Invoice
Recd By:
64.00
4.80
68.80
DANNYS
DILLY TREE ROAD #23
(242) -999-9999
TIN 000004231
9/12/2016
10:32AM
RECEIPT # 897
DESCRIPTION
WATER
BANANAS
CHEESE & MAC
GENERIC BLEACH
EVP MILK
EVP MILK
EVP MILK
PAMPERS
# OF ITEMS: 8
OUTPUT TAX WORKSHEET

TAXABLE PERIOD..
Date
Invoice #
Supplies / Sales
Standard -rate
Other rate
Zero-rate
TOTAL
Prepared by:
Approved by:
Supplies/sales can be tax

inclusive or exclusive
Exempt
VAT
Output tax
Total
summary of daily sales - for the purpose of preparing work sheet & vat returns
VAT LTD
OUTPUT TAX WORKSHEET
TAXABLE PERIODSept 1 - 30, 2015..
DATE
INVOICE #
1-Sep 001 - 150
2-Sep 151 - 279
3-Sep
4-Sep 280 - 304
5-Sep 305 - 356
6-Sep 357 - 398
7-Sep 399 - 432
8-Sep 433 - 478
9-Sep 479 - 498
10-Sep
11-Sep 499 - 523
12-Sep 524 - 540
13-Sep 541 - 573
14-Sep 574 - 597
15-Sep 598 - 611
16-Sep 612 - 645
17-Sep
18-Sep 646 - 683
19-Sep 684 - 699
20-Sep 700 - 734
21-Sep 735 - 786
22-Sep 787 - 803
23-Sep 804 - 823
24-Sep
25-Sep 824 - 841
26-Sep 842 - 869
27-Sep 870 - 892
28-Sep 893 - 909
29-Sep 910 - 934
30-Sep 935 - 970
TOTAL
Prepared by:
Approved by:
STANDARD RATED
ZERO-RATED
EXEMPT
VAT
3,409.00
24,500.00
2,000.00
2,581.00
5,087.00
3,000.00
4,300.00
12,098.00
33,000.00
23,899.00
40,100.00
28,086.00
17,000.00
16,000.00
25,980.00
53,000.00
39,000.00
10,000.00
3,500.00
12,000.00
11,976.00
5,091.00
7,699.00
5,400.00
6,549.00
9,011.00
23,000.00
8,700.00
4,000.00
10,823.00
7,651.00
11,762.00
4,563.00
2,309.00
11,973.00
8,634.00
2,309.00
16,753.00
3,298.00
5,432.00
7,602.00
6,533.00
15,000.00
5,096.00
5,000.00
6,499.00
7,653.00
7,652.00
6,523.00
12,777.00
23,874.00
304,718.00
10,945.00
5,522.00
9,011.00
2,300.00
9,877.00
17,609.00
354,728.00
638,186.60
1,231.00
5,000.00
1,000.00
2,000.00
3,421.00
1,800.00
2,398.00
11,090.00
8,600.00
4,390.00
3,012.00
2,000.00
71,442.00
TOTAL
237.84
180.07
300.00
844.05
2,302.33
1,667.37
2,797.67
1,959.49
835.53
355.19
537.14
376.74
456.91
628.67
318.35
161.09
835.33
602.37
161.09
1,168.81
453.42
533.93
533.86
455.09
891.42
1,665.63
21,259.40
29,909.00
10,668.00
24,800.00
40,098.00
58,980.00
81,899.00
80,100.00
40,086.00
34,976.00
17,212.00
13,499.00
18,621.00
14,200.00
31,863.00
12,861.00
7,741.00
28,175.00
15,167.00
21,699.00
21,849.00
18,675.00
13,175.00
16,663.00
11,835.00
22,654.00
43,483.00
730,888.00
709,628.60
INPUT TAX WORKSHEET

TAXABLE PERIOD
INVOICE/Entry DATE
TOTAL
Prepared by:
Approved by:
Invoice / Entry #
Supplier's TIN
SUPPLIER'S
Name
Value
VAT
TOTAL
DOMESTIC INPUT TAX WORKSHEET

TAXABLE PERIODSept. 1 - 30 2015
INVOICE DATE
TOTAL
INVOICE # SUPPLIER'S TIN #
SUPPLIER'S NAME
TAXABLE VALUE
VAT
TOTAL
Remarks
12,941.93 goods
CODE
4-Sep 003
12,039.00
902.93
4-Sep 1234
2,345.00
175.88
2,520.88 fixtures
4-Sep W233
7,965.00
597.38
8,562.38 goods
7-Sep FT-2753
2,347.00
176.03
2,523.03 packaging
7-Sep 765
8,745.00
655.88
9,400.88 goods
8-Sep G321
4,555.00
341.63
4,896.63 goods
9-Sep D32
11,357.00
851.78
12,208.78 goods
9-Sep 665
1,203.00
90.23
12-Sep 998
21,236.00
1,592.70
12-Sep H231
1,976.00
148.20
2,124.20 telephone
20-Sep AC-32
3,000.00
225.00
3,225.00 tyres for motor cars
21-Sep 76
6,008.00
450.60
6,458.60 goods
25-Sep 711
2,133.00
159.98
2,292.98 accounting fee
26-Sep C23
4,300.00
322.50
4,622.50 goods
27-Sep 004
750.00
56.25
28-Sep 123
1,200.00
90.00
29-Sep CB-333
2,500.00
29-Sep E-122
1,293.23 stationery
22,828.70 goods
806.25 advertising
A
D
1,290.00 item purchase for director
187.50
2,687.50 Custom broker fee
6,500.00
487.50
6,987.50 electricity
100,159.00
7,511.93
107,670.93
IMPORT INPUT TAX - WORKSHEET

Entry date
Prepared by:
Approved by:
Entry #
SUPPLIER'S NAME
TAXABLE VALUE
VAT
TOTAL
Remarks
Deferred VATon IMPORTs - WORKSHEET

Entry date
Entry #
SUPPLIER'S NAME
TAXABLE VALUE
TOTAL
Prepared by:
Approved by:
VAT
TOTAL
Remarks
IMPORT Services- WORKSHEET

Entry date
TOTAL
Entry #
SUPPLIER'S NAME
TAXABLE VALUE
VAT
TOTAL
Remarks
IMPORT INPUT TAX - WORKSHEET

Entry date
Entry #
SUPPLIER'S NAME
TAXABLE VALUE
VAT
TOTAL
Remarks
7-Sep
15,230.00
1,142.25
16,372.25 goods
13-Sep
7,544.00
565.80
8,109.80 goods
20-Sep
15,967.00
1,197.53
17,164.53 goods
29-Sep
23,986.00
1,798.95
25,784.95 goods
62,727.00
4,704.53
67,431.53
TOTAL
Prepared by:
Approved by:
Deferred VATon IMPORTs - WORKSHEET

Entry date
Entry #
7-Sep
SUPPLIER'S NAME
TAXABLE VALUE
75,000.00
TOTAL
Prepared by:
Approved by:
75,000.00
VAT
TOTAL
Remarks
5,625.00
80,625.00 goods
- goods
5,625.00
80,625.00
IMPORT Services- WORKSHEET

Entry date
Entry #
15-Sep
TOTAL
SUPPLIER'S NAME
TAXABLE VALUE
10,000.00
10,000.00
VAT
TOTAL
Remarks
750.00
10,750.00
750.00
10,750.00
Taxable Period - Sept. 1 - 30, 2010

Credit Note Issued by IRD Ltd
Date
C/note # Invoice # Standard
Total
Zero
exempt
VAT
TOTAL
Debit Note Issued By IRD Ltd

Date
D/note # Invoice #
Standard
Total
Zero
exempt
VAT
TOTAL
Credit Note recd by IRD Ltd

Date
C/note # Invoice #
Total
Standard
Zero
Should include name & TIN of supplier / recipient as the case may be
exempt
VAT
TOTAL
Taxable Period - Sept. 1 - 30, 2010

Credit Note Issued by IRD Ltd
Date
5-Sep
11-Sep
20-Sep
28-Sep
C/note # Invoice # Standard

Zero
exempt
001
266
230.00
002
435
3,082.00
2,322.00
003
702
1,500.00
2,300.00
004
801
2,983.00
3,873.00
2,300.00
Total
7,795.00
8,495.00
2,300.00
VAT
TOTAL
30.00
496.00
402.00
5,839.00
195.65
4,502.00
389.09
9,957.00
1,016.74
20,794.00
Debit Note Issued By IRD Ltd

Date D/note # Invoice #
11-Sep
001
359
20-Sep
002
687
28-Sep
003
810
Total
Standard
1,200.00
768.00
3,202.00
Zero
350.00
1,200.00
896.00
exempt
50.00
1,200.00
VAT
83.72
53.58
223.40
TOTAL
1,959.00
2,655.00
6,108.00
5,170.00
2,446.00
1,250.00
360.70
10,722.00
VAT
104.65
34.88
229.74
TOTAL
1,500.00
500.00
3,293.00
369.28
5,293.00
Credit Note recd by IRD Ltd

Date
15-Sep
20-Jan
29-Sep
C/note # Invoice #
23
D32
33
H231
12
998
Total
Standard
1,500.00
500.00
3,293.00
Zero
5,293.00
Should include name & TIN of supplier / recipient as the case may be
exempt
VAT ACCOUNT
Input Tax
$
Domestic purchases
imports
Debit note recd
Credit note issued
Bad debt
Imported services
Not allowable (D)
Adjustment (M)
Deferred VAT
Total Input tax allowable
Output Tax
7,511.93 Supply of goods/services
4,704.53 Debit note issued
Credit note recd
1,016.74 Bad debt recovery
Goods taken for non-business use
750.00
(2,200) adjustments
(103)
5,625.00 Import services
17,304.37 Total output tax
Less Input tax
Tax payable/creditable
Deferred VAT
Total VAT Payable/creditable
$
21,259.40
360.70
369.28
750.00
22,739.37
17,304.37
5,435.01
5,625.00
11,060.01
V.A.T. Return Form

Section A - Taxpayer Information
Taxpayer Name:
Trade Name:
TIN:
Filing Frequency
Tax Period:
From:
To:
Due Date:
Note: Enter all amounts in Bahamian Dollars (BSD)
Section B - OUTPUT TAX (supply/sale of goods and services)

Are you a Financial Institution
No
Zero-Rated Supplies
354,728.00
Exempt Supplies
71,442.00
Bonded Supplies (fill in only if Grand Bahama Port Authority

Licensee)
Taxable Supplies at Standard Rate (7.5%)

Value inclusive of VAT
304,718.00
21,259.40
Reverse Charge VAT on imported Services
750.00
Adjustment for the period
729.98
10
22,739.37
VAT (L4 X (7.5/107.5)
Supplies, excluding VAT

Taxable & Bonded Supplies (L1 + L3 + L4 - L5)
638,186.60
Total Supplies, incl. Bonded Supplies (L2+ L8)
709,628.60
TOTAL OUTPUT TAX (L5 + L6 + L7)
Section C - INPUT TAX (Imports and Purchases)
Bonded inputs relating to imports and domestic purchases

(fill in only if Grand Bahama Port Authority Licensee)
11
Imports
Value of Imports of capital goods & services
(exclusive of VAT)
12
137,727.00
Value of Imports of operating inputs and other noncapital supplies (exclusive of VAT)
13
137,727.00
VAT paid on Imported Goods
14
4,704.53
Deferred VAT on Imported Goods payable in period
15
5,625.00
VAT payable on Imported Services (copy L6)
16
750.00
Value of Domestic Purchases of capital goods &

services (exclusive of VAT)
17
100,159.00
Value of Domestic Purchases of operating inputs and

other non-capital supplies (exclusive of VAT)
18
95,838.00
VAT paid on Domestic Goods & Services, and

deemed VAT if applicable
19
7,511.93
Total VAT paid on Domestic Purchases & Imports, and

Deemed Input VAT (L14 + L15 + L16 + L19 )
20
18,591.45
SubAmount from L20 that is non-claimable (attributable to

exempt supplies/sales, non-claimable - section 50(1) the
VAT Bill, or section 32 (1) of the VAT Regulations)
21
2,200.35
SubAmount from L20 that is attributable to mixed

supplies/sales (exempt, taxable and bonded) and is
claimable in part (section 31 of the VAT Regulations)
22
1,027.80
Domestic Purchases
Input VAT from Mixed Supplies - Refer to apportionment worksheet
23
924.33
SubAmount from L20 that is directly attributable to taxable supplies or bonded supplies
only & is fully claimable under the provisions of the VAT act
24
15,363.30
25
1,016.74
26
17,304.37
TOTAL INPUT TAX ( L23 + L24 + L25)
Section D - VAT Liability or VAT Credit

VAT Payable or VAT Credit (L10 - L26. Can be negative)
27
5,435.01
Deferred VAT payable during period
28
5,625.00
Total VAT payable (L27+ L28)
29
11,060.01
rried over from prior taxable period (Max up to Amount on L29)
30
0.00
Net VAT Payable or VAT Credit (L29 - L30)
31
11,060.01
VAT WORKING PAPERS
CODE
A
M
D
To compute allowable input tax

Domestic purchases
Allowable
Mixed activity
not allowable
Total
4,283.78
1,027.80
2,200.35
7,511.93
6,484.13
To apportion input tax on in respect of mix activity
A
B
C
whereby A * B/C
input tax on mixed activity
taxable supplies (including zero-rated)
total supplies
allowable amount
amount not allowable
total input tax not allowable

Amount to enter in box 205 on VAT return
Credit note received
Amount not allowable
1,027.80
638,186.60
709,628.60
89.93%
924.33
103.47
2,200.35
1,016.74
2,200.35
(1,183.61)
NB: please remember 90% rule relating for exempt & taxable supplies as per
section 40 (3).
NB-1: input tax on domestic purchases was entered before any adjustment
The amount could have been entered on the return after adjusting for
non-deductable amount. = (12,954.85 +3020..25) = $15,975.10
then the adjustment box would reflect $999.36
To apportion input tax for mixed activity, use the apportionment formula A*B/C where A equals input tax on mixed activity, B equals taxable supplies including zero rated, and C equals total supplies.
Please remember the de minimis rule that relates to exempt and taxable supplies which allows a taxable person to claim the total input tax where the fraction B/C is more than 90%.
If the fraction B/C is less than 10% a taxable person may not claim the total input tax. Where the fraction falls between 10% and 90% then the taxable person may claim that particular amount of input tax.
For more information on the de minimis rule please refer to section 50, subsection 3 of the VAT Act and regulations 31, sub regulation 2 and regulations 32, sub regulation 4 of the VAT Regulations.
SAMPLE
Box #
Value Added Tax Return - Standard Return

Value
Tax
Calculation of Output tax

1 Standard rated supplies
2 Goods & Services (hotel)
3 Zero-rated supplies
4 Exempt supplies
5 Total Supplies
6 VAT on standard-rated supplies
7 VAT on accommodation supplies
8 VAT adjustments
9 Total Output tax
Calcualtion of Input tax
10 Value of imports and customs charges
11 Value of local taxable purchases
Value on hotel purchases
Total imports & local purchases
12 Vat paid on imports
13 Vat paid on local purchases
VAT on Hotel purchases
14 VAT adjustments
15 Credit approved by IRD
16 Total input tax
Calculation of tax payable (or excess input tax)
17 Tax payable for this period
18 Late filing & payment -Penalty
19 Late filing - interest
20 Total due (17,18, 19)
21 amount paid
22 Excess input calculated by taxpayer
Remarks
304,718.00
354,728.00
71,442.00
730,888.00
Tax inclusive
Tax inclusive
Tax inclusive
21,259.40
729.98
21,989.37
67,431.53
107,670.93
Tax inclusive
Tax inclusive
175,102.45
4,704.53
7,511.93
(1,183.61)
11,032.84
10,956.53
SAMPLE
Section B: Output Tax (Supplies/sale of goods and services)
Total Supplies/Sales& adjustment (TI) and Imported servi
Applicable Flate Rate
VAT Payable ( L1 x L2)
Deferred VAT payable during the Period
Output VAT on Sale of Captial assets
Input VAT on Purchase of Capital Assets
Total VAT for the Period ( L3 + L4 + L5 - L6)
VAT Credit c/f (max up to amount on L7)
Net VAT remit/ credit ( L7 - L8)
Section E: Fines & Interest
1
2
4.50%
3
4
5
6
7
8
9
0
0
SAMPLE
Section B: Output Tax (Supplies/sale of goods and services)
Zero-rated Supplies
Exempt Supples
Raxable supplies @ standard rate (7.5%)
VAT ( L3 x 7.5 / 107.5)
Reverse Charge VAT - imported services
Taxable Supplies, excluding VAT (L1 + L3 -L4)
Total Supplies (L2 + L7)
Total Output Tax (L4 + L5 + L6)
1
2
3
7
8
4
5
6
16
17
18
0
0
Section C: Input Tax (Imports & Purchases)

Domestic Purchases
Value of Domestic Purchases of captial goods & Sercives (TE)
Value of Domestic Purchases of Consumer goods & Sercives (TE)
Imports
Value of Imports of captial goods & Sercives (TE)
Value of Imports of Consumer goods & Sercives (TE)
VAT Paid on Imports
Deferred VAT on Imported Goodspyable in Period
Total Amount Claimable Input VAT
Adjustment for the Period
Total Input VAT ( L16 + L17)
Section D: VAT Liability or VAT Credit
VAT payable or VAT Credit ( L9 - L18)
Deferred VAT payable during period
Total VAT Payble
VAT Credit c/f from prior period (max up to L21)
Net VAT Payable or VAT Credit (L21 - L22)
Section E: Fines & Interest
10
11
12
13
14
15
19
20
21
22
23
0
0
0

Accounting For Vat: The Bahamas

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The Bahamas

ACCOUNTING FOR VAT

SUPPLIES FROM ALL

TAX INVOICE & OTHER

INPUT TAX WORKSHEET

DEBIT NOTE; CREDIT NOTE;

DEBIT NOTE; CREDIT NOTE;

ACCOUNTING FOR VAT

Input tax as per Mixed/partial Activity

Taxable (including Zerorated)

Input tax allowable

Input tax not

General overheads &

Tax on specific items

CUST. ORDER NO. 8826

DATE: Sept. 6, 2015

NAME: Tax Reform Unit

On Acct MD SERTDPaid Out

2 Case 5 gallon bottle water

OUTPUT TAX WORKSHEET

Supplies/sales can be tax

INPUT TAX WORKSHEET

DOMESTIC INPUT TAX WORKSHEET

INVOICE # SUPPLIER'S TIN #

3,225.00 tyres for motor cars

2,292.98 accounting fee

1,290.00 item purchase for director

2,687.50 Custom broker fee

IMPORT INPUT TAX - WORKSHEET

Deferred VATon IMPORTs - WORKSHEET

IMPORT Services- WORKSHEET

IMPORT INPUT TAX - WORKSHEET

Deferred VATon IMPORTs - WORKSHEET

IMPORT Services- WORKSHEET

Taxable Period - Sept. 1 - 30, 2010

C/note # Invoice # Standard

Debit Note Issued By IRD Ltd

Credit Note recd by IRD Ltd

Taxable Period - Sept. 1 - 30, 2010

C/note # Invoice # Standard

Debit Note Issued By IRD Ltd

Credit Note recd by IRD Ltd

V.A.T. Return Form

Section B - OUTPUT TAX (supply/sale of goods and services)

Bonded Supplies (fill in only if Grand Bahama Port Authority

Taxable Supplies at Standard Rate (7.5%)

Reverse Charge VAT on imported Services

Adjustment for the period

VAT (L4 X (7.5/107.5)

Supplies, excluding VAT

Total Supplies, incl. Bonded Supplies (L2+ L8)

TOTAL OUTPUT TAX (L5 + L6 + L7)

Section C - INPUT TAX (Imports and Purchases)

Bonded inputs relating to imports and domestic purchases

VAT paid on Imported Goods

Deferred VAT on Imported Goods payable in period

VAT payable on Imported Services (copy L6)

Value of Domestic Purchases of capital goods &

Value of Domestic Purchases of operating inputs and

VAT paid on Domestic Goods & Services, and

Total VAT paid on Domestic Purchases & Imports, and

SubAmount from L20 that is non-claimable (attributable to

SubAmount from L20 that is attributable to mixed