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
NB:Excel 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 DOMESTIC TAXABLE

SOURCES SUPPLIES RECEIVED IMPORTS

TAX INVOICE & OTHER TAX INVOICES Custom

INVOICES Document

VAT ACCOUNT

OUTPUT TAX INPUT TAX WORKSHEET

WORKSHEET

VAT RETURN
ADJUSTMENTS ADJUSTMENTS

DEBIT NOTE; CREDIT NOTE; DEBIT NOTE; CREDIT NOTE;

BAD DEBT RECOVERY; BAD DEBT; ERRORS
ERRORS

ACCOUNTING FOR VAT

FLOW CHART
 Input tax as per Mixed/partial Activity

Input tax on
supplies/Importation

General overheads &

Exempt Taxable (including Zero- Others not directly
supplies rated) attributable to taxable or
exempt supplies

apportion as per
Input tax not Input tax allowable formula
allowable 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 COD Charge On Acct MD SERTDPaid Out

Quantity DESCRIPTION Price Amount

2 Case 5 gallon bottle water 14.00 28.00

3 cone cup 12.00 36.00

$68.80

Total 64.00
VAT @ 7.50% 4.80
Total Invoice 68.80

Recd By:
 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 VAT Total
Standard -rate Other rate Zero-rate Exempt Output tax

TOTAL
Prepared by:
Approved by:

Supplies/sales can be tax

inclusive or exclusive
summary of daily sales - for the purpose of preparing work sheet & vat returns
VAT LTD
OUTPUT TAX WORKSHEET
TAXABLE PERIOD…Sept 1 - 30, 2015……………………………………..

DATE INVOICE # STANDARD RATED ZERO-RATED EXEMPT VAT TOTAL

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

SUPPLIER'S
INVOICE/Entry DATE Invoice / Entry # Supplier's TIN Name Value VAT TOTAL

TOTAL
Prepared by:
Approved by:
 DOMESTIC INPUT TAX WORKSHEET
TAXABLE PERIOD…Sept. 1 - 30 2015………………………

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

TOTAL 100,159.00 7,511.93 107,670.93

 IMPORT INPUT TAX - WORKSHEET
TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Entry date Entry # SUPPLIER'S NAME TAXABLE VALUE VAT TOTAL Remarks

Prepared by:
Approved by:
 Deferred VATon IMPORTs - WORKSHEET
TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Entry date Entry # SUPPLIER'S NAME TAXABLE VALUE VAT TOTAL Remarks

TOTAL - - -
Prepared by:
Approved by:

IMPORT Services- WORKSHEET

TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Entry date Entry # SUPPLIER'S NAME TAXABLE VALUE VAT TOTAL Remarks

TOTAL - - -
 IMPORT INPUT TAX - WORKSHEET
TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

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

TOTAL 62,727.00 4,704.53 67,431.53

Prepared by:
Approved by:
 Deferred VATon IMPORTs - WORKSHEET
TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Entry date Entry # SUPPLIER'S NAME TAXABLE VALUE VAT TOTAL Remarks
7-Sep 75,000.00 5,625.00 80,625.00 goods
- - goods
- -
- -

TOTAL 75,000.00 5,625.00 80,625.00

Prepared by:
Approved by:

IMPORT Services- WORKSHEET

TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Entry date Entry # SUPPLIER'S NAME TAXABLE VALUE VAT TOTAL Remarks
15-Sep 10,000.00 750.00 10,750.00
- -
- -
- -

TOTAL 10,000.00 750.00 10,750.00

 Taxable Period - Sept. 1 - 30, 2010
Credit Note Issued by IRD Ltd

Date C/note # Invoice # Standard Zero exempt VAT TOTAL

Total - - - - -

Debit Note Issued By IRD Ltd

Date D/note # Invoice # Standard Zero exempt VAT TOTAL

Total - - - - -

Credit Note recd by IRD Ltd

Date C/note # Invoice # Standard Zero exempt VAT TOTAL

Total - - - - -

Should include name & TIN of supplier / recipient as the case may be
 Taxable Period - Sept. 1 - 30, 2010
Credit Note Issued by IRD Ltd

Date C/note # Invoice # Standard Zero exempt VAT TOTAL

5-Sep 001 266 230.00 30.00 496.00
11-Sep 002 435 3,082.00 2,322.00 402.00 5,839.00
20-Sep 003 702 1,500.00 2,300.00 195.65 4,502.00
28-Sep 004 801 2,983.00 3,873.00 2,300.00 389.09 9,957.00
- -
- -
Total 7,795.00 8,495.00 2,300.00 1,016.74 20,794.00

Debit Note Issued By IRD Ltd

Date D/note # Invoice # Standard Zero exempt VAT TOTAL
11-Sep 001 359 1,200.00 350.00 50.00 83.72 1,959.00
20-Sep 002 687 768.00 1,200.00 53.58 2,655.00
28-Sep 003 810 3,202.00 896.00 1,200.00 223.40 6,108.00

Total 5,170.00 2,446.00 1,250.00 360.70 10,722.00

Credit Note recd by IRD Ltd

Date C/note # Invoice # Standard Zero exempt VAT TOTAL

15-Sep 23 D32 1,500.00 104.65 1,500.00
20-Jan 33 H231 500.00 34.88 500.00
29-Sep 12 998 3,293.00 229.74 3,293.00

Total 5,293.00 - - 369.28 5,293.00

Should include name & TIN of supplier / recipient as the case may be
 VAT ACCOUNT
TAXABLE PERIOD…Sept. 1 - 30 2015…………………………

Input Tax $ Output Tax $

Domestic purchases 7,511.93 Supply of goods/services 21,259.40
imports 4,704.53 Debit note issued 360.70
Debit note recd Credit note recd 369.28
Credit note issued 1,016.74 Bad debt recovery
Bad debt Goods taken for non-business
Imported services 750.00 use
Not allowable (D) (2,200) adjustments
Adjustment (M) (103)
Deferred VAT 5,625.00 Import services 750.00
Total Input tax 17,304.37 Total output tax 22,739.37
allowable Less Input tax 17,304.37
Tax payable/creditable 5,435.01
Deferred VAT 5,625.00
Total VAT Payable/creditable 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 1 354,728.00
Exempt Supplies 2 71,442.00

Bonded Supplies (fill in only if Grand Bahama Port Authority

Licensee) 3
Taxable Supplies at Standard Rate (7.5%)
Value inclusive of VAT 4 304,718.00
VAT (L4 X (7.5/107.5) 5 21,259.40
Reverse Charge VAT on imported Services 6 750.00
Adjustment for the period 7 729.98
Supplies, excluding VAT
Taxable & Bonded Supplies (L1 + L3 + L4 - L5) 8 638,186.60
Total Supplies, incl. Bonded Supplies (L2+ L8) 9 709,628.60
TOTAL OUTPUT TAX (L5 + L6 + L7) 10 22,739.37
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 non-

capital 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
Domestic Purchases

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
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
Adjustment for the period 25 1,016.74
TOTAL INPUT TAX ( L23 + L24 + L25) 26 17,304.37
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
VAT credit carried 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

To compute allowable input tax

CODE Domestic purchases
A Allowable 4,283.78 6,484.13
M Mixed activity 1,027.80
D not allowable 2,200.35
Total 7,511.93

To apportion input tax on in respect of mix activity

whereby A * B/C
A input tax on mixed activity 1,027.80
B taxable supplies (including zero-rated) 638,186.60
C total supplies 709,628.60
89.93%
allowable amount 924.33
amount not allowable 103.47

total input tax not allowable 2,200.35

Amount to enter in box 205 on VAT return

Credit note received 1,016.74
Amount not allowable 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
Value Added Tax Return - Standard Return
Box # Value Tax Remarks

Calculation of Output tax

1 Standard rated supplies 304,718.00 Tax inclusive
2 Goods & Services (hotel) - Tax inclusive
3 Zero-rated supplies 354,728.00
4 Exempt supplies 71,442.00
5 Total Supplies 730,888.00 Tax inclusive
6 VAT on standard-rated supplies 21,259.40
7 VAT on accommodation supplies -
8 VAT adjustments 729.98
9 Total Output tax 21,989.37
Calcualtion of Input tax
10 Value of imports and customs charges 67,431.53 Tax inclusive
11 Value of local taxable purchases 107,670.93 Tax inclusive
Value on hotel purchases
Total imports & local purchases 175,102.45
12 Vat paid on imports 4,704.53
13 Vat paid on local purchases 7,511.93
VAT on Hotel purchases
14 VAT adjustments (1,183.61)
15 Credit approved by IRD
16 Total input tax 11,032.84
Calculation of tax payable (or excess input tax)
17 Tax payable for this period 10,956.53
18 Late filing & payment -Penalty
19 Late filing - interest
20 Total due (17,18, 19)
21 amount paid
22 Excess input calculated by taxpayer
 SAMPLE

Value Added Tax Return - Standard Return

Section B: Output Tax (Supplies/sale of goods and services)

Total Supplies/Sales& adjustment (TI) and Imported servi 1

Applicable Flate Rate 2 4.50%
VAT Payable ( L1 x L2) 3 0
Deferred VAT payable during the Period 4
Output VAT on Sale of Captial assets 5
Input VAT on Purchase of Capital Assets 6
Total VAT for the Period ( L3 + L4 + L5 - L6) 7 0
VAT Credit c/f (max up to amount on L7) 8
Net VAT remit/ credit ( L7 - L8) 9 0
Section E: Fines & Interest
 SAMPLE
Value Added Tax Return - Standard Return

Section B: Output Tax (Supplies/sale of goods and services)

Zero-rated Supplies 1
Exempt Supples 2
Raxable supplies @ standard rate (7.5%) 3
VAT ( L3 x 7.5 / 107.5) 4 0
Reverse Charge VAT - imported services 5
Adjustment for the period 6
Taxable Supplies, excluding VAT (L1 + L3 -L4) 7 0
Total Supplies (L2 + L7) 8 0
Total Output Tax (L4 + L5 + L6) 9 0

Section C: Input Tax (Imports & Purchases)

Domestic Purchases

Value of Domestic Purchases of captial goods & Sercives (TE) 10

Value of Domestic Purchases of Consumer goods & Sercives (TE) 11

Imports
Value of Imports of captial goods & Sercives (TE) 12
Value of Imports of Consumer goods & Sercives (TE) 13
VAT Paid on Imports 14
Deferred VAT on Imported Goodspyable in Period 15
Total Amount Claimable Input VAT 16
Adjustment for the Period 17
Total Input VAT ( L16 + L17) 18 0
Section D: VAT Liability or VAT Credit

VAT payable or VAT Credit ( L9 - L18) 19 0

Deferred VAT payable during period 20
Total VAT Payble 21 0
VAT Credit c/f from prior period (max up to L21) 22
Net VAT Payable or VAT Credit (L21 - L22) 23 0
Section E: Fines & Interest