● Frequently asked questions
Everything you might
want to know.
VAT in The Bahamas, how ClearFile works, billing, and security. Can't find your question? Get in touch.
Section 01
VAT in The Bahamas
- Who has to register for VAT?
- Any business with annual turnover at or above BSD $100,000 must register for VAT with the Department of Inland Revenue. Below that threshold, registration is optional.
- What's the difference between zero-rated and exempt?
- Both apply 0% VAT to the supply itself, but they differ on input VAT. Zero-rated supplies (like exports and international transport) let you recover the VAT you paid on related costs. Exempt supplies (like long-term residential rent and some financial products) do NOT — that input VAT is a sunk cost. ClearFile surfaces this distinction clearly when you enter transactions.
- What rates apply to my sales?
- Standard rate is 10% for most goods and services. The reduced rate of 5% applies (from April 1, 2025) to unprepared food in licensed food stores, baby and adult diapers, feminine hygiene products, medications, and medical supplies.
- When is my return due?
- Monthly filers must submit by the 21st of the following month. Quarterly filers must submit by the 21st of the month after the quarter ends.
- What are the penalties for filing late?
- BSD $100 fixed penalty plus 10% of any unpaid tax, with 1.5% monthly interest accruing on the outstanding balance. ClearFile sends reminders 14, 7, and 3 days before each deadline so you stay ahead.
Section 02
How ClearFile works
- Does ClearFile file my return for me?
- No. ClearFile prepares an accurate, OTAS-ready return — you copy the values into the OTAS portal and submit yourself.
- Does ClearFile update when the law changes?
- Yes. We follow changes to Bahamian VAT law and keep ClearFile's rates, thresholds, and penalty calculations current, so the return you prepare always reflects the rules in force. Returns you generated in the past keep the rules that applied at the time — your filing history stays exactly as you filed it.
- Can I import data from my existing accounting tool?
- Not yet — for now, transactions are entered directly in ClearFile. We're working on import options and direct integrations with the most common Bahamian accounting tools, so let us know which ones you need.
- Where do I file the return after ClearFile prepares it?
- On the OTAS portal at the Department of Inland Revenue's website. ClearFile generates a PDF and CSV that map cleanly to OTAS form fields — you copy the values across and submit.
Section 03
Security & data
- Where is my data stored?
- On managed Postgres infrastructure with encryption at rest. All connections are TLS-encrypted. Document uploads are stored in a separate, access-controlled object store.
- Who can see my business data?
- Only you — and anyone holding your login credentials, so please keep them to yourself and never share them publicly. Every request to ClearFile is authenticated and scoped to your business, so no other customer can reach your records.
- What happens if I delete my account?
- Your data isn't erased straight away — we hold it for 90 days first. During that window you can ask us to restore it to a new account if you change your mind, or request a copy of it, and our support team will export your records to CSV and PDF and email them to you. We'll verify you're authorised to act for the business before doing either. After 90 days, everything is permanently deleted.
- Do you back up my data?
- Yes. Your data sits on managed Postgres infrastructure with automated daily backups, so it can be recovered if something goes wrong on our end.
Still have questions?
Our team is small and responds quickly. Send us a note and we'll be back to you the same business day.