VAT Categorization

Understanding how transactions are categorized for VAT compliance in The Bahamas.

VAT Rates in The Bahamas

As of 2025, The Bahamas applies these VAT rates:

Rate	Name	Applies To
10%	Standard Rate	Most goods and services
5%	Reduced Rate	Breadbasket items at licensed food stores
0%	Zero-Rated	Exports, inter-island shipping
Exempt	VAT Exempt	Financial services, education, healthcare

Automatic Categorization

CoralLedger Comply uses intelligent categorization based on:

Description Analysis

Keywords in transaction descriptions trigger automatic categorization:

• "bread", "rice", "flour" → 5% (if from licensed food store)
• "export", "shipping to" → 0%
• "insurance premium" → Exempt

Vendor Matching

Previously categorized transactions from the same vendor inform new categorizations.

Industry Rules

Your business industry setting applies sector-specific rules.

Manual Override

You can always override automatic categorization:

1. Go to Transactions
2. Select the transaction
3. Click Edit Category
4. Choose the correct VAT rate
5. Optionally add a note explaining the change

Category Review

We recommend reviewing categorizations:

• Weekly during your first month
• Monthly once patterns are established
• Before generating each VAT return

Next Steps

• Generate your VAT return
• View VAT rate reference