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
Breadbasket Items
Essential food items eligible for the reduced 5% VAT rate when sold by licensed food stores.
C
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
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.
Z
Zero-Rated Supply
A taxable supply where VAT is charged at 0%, but input VAT can still be recovered.