Glossary
Common terms used in Bahamas VAT compliance.
A
Audit Trail
A chronological record of all changes made to transactions, categories, and VAT returns in CoralLedger Comply.
B
Bad Debt Relief
A provision allowing businesses to claim back VAT on invoices that remain unpaid for 12 months or more. CoralLedger Comply tracks eligible debts automatically.
Breadbasket Items
Essential food items eligible for the reduced 5% VAT rate when sold by licensed food stores.
C
Construction VAT
The reverse charge mechanism for construction services exceeding $1 million. Part of the 2025 VAT reforms.
Comptroller
The Comptroller of the Department of Inland Revenue, responsible for VAT administration in The Bahamas.
Compliance Score
A grade (A+ to F) indicating your VAT compliance health based on categorization accuracy, filing timeliness, documentation, and anomaly resolution.
D
DIR
Department of Inland Revenue - the government agency responsible for tax collection including VAT.
E
Exempt Supply
Goods or services that are outside the VAT system. No VAT is charged and no input VAT can be recovered.
F
Food Store License
A license from the Ministry of Health required to charge the 5% reduced rate on breadbasket items.
I
Input VAT
VAT paid by a business on purchases that can be claimed as a credit against output VAT.
Invoice
A document recording a taxable supply, which must include specific information for VAT purposes.
O
Output VAT
VAT collected by a business on sales that must be remitted to the Comptroller.
R
Refund Eligibility
Businesses where 50% or more of supplies are zero-rated may be eligible for VAT refunds. CoralLedger Comply monitors this threshold.
Registrant
A business registered for VAT with the Department of Inland Revenue.
S
Standard Rate
The default VAT rate of 10% applied to most taxable supplies in The Bahamas.
T
Tax Invoice
A formal invoice that includes all VAT-required information: seller details, buyer details, TIN, VAT number, itemized amounts, VAT calculations, and total.
TIN
Tax Identification Number - a unique number assigned to businesses by the Comptroller.
Taxable Supply
A supply of goods or services that is subject to VAT (at 10%, 5%, or 0%).
V
VAT
Value Added Tax - a consumption tax on the supply of goods and services.
VAT Number
A registration number assigned to VAT-registered businesses.
VAT Period
The time period covered by a VAT return (monthly or quarterly).
VAT Return
A periodic report submitted to the DIR summarizing taxable supplies and VAT collected/paid.
W
WORM
Write Once Read Many — a data storage compliance standard ensuring records cannot be modified or deleted after creation. CoralLedger Comply's audit trail uses WORM compliance.
Z
Zero-Rated Supply
A taxable supply where VAT is charged at 0%, but input VAT can still be recovered.