● 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. We are not a registered filing agent and we are not affiliated with the Department of Inland Revenue.
- How does ClearFile know which category to suggest?
- Every transaction description runs against a sector-aware keyword engine. Hints specific to your sector (food & beverage, hospitality, professional services, etc.) take priority over generic ones. You can always override the suggestion — overrides require a reason and are logged immutably.
- Are the tax rates baked into the code?
- No. Every rate, threshold, and penalty value lives in a versioned database table. When the law changes, we update a row — no deploy required, and historical returns continue to use the rules that were in effect when they were generated.
- Can I import data from my existing accounting tool?
- CSV import is available on all tiers. We're working on direct integrations with the most common Bahamian accounting tools — 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
Billing
- Do I need a credit card to start?
- No. The Free tier is free forever — no card, no commitment. You only enter billing details if you upgrade to a paid plan.
- What's the difference between the tiers?
- Each tier gives you a monthly transaction allowance — quarterly filers get 3× that for the full quarter. Free gives you 50/month, VAT Essentials gives you 150/month, Growth gives you 300/month, and Professional is unlimited. VAT Essentials and above also include email reminders.
- Can I switch tiers?
- Yes. Upgrades take effect immediately. Downgrades take effect at the end of the current billing period. There's no penalty for switching.
- How does annual billing work?
- Annual plans are billed once per year and save 15% versus monthly. Cancel anytime — refunds are pro-rated on your remaining months.
- What payment methods do you accept?
- All major credit and debit cards via Stripe. Bank transfers can be arranged for Professional plans — contact us.
Section 04
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 members of your business — enforced at the database level by row-level security policies. Even our internal team cannot view your data without an explicit support ticket from you.
- What happens if I cancel?
- Your data remains accessible in read-only mode for 90 days after cancellation, so you can export anything you need. After that, it's permanently deleted unless you ask us to retain it.
- Do you back up my data?
- Yes — automatically, daily, with point-in-time recovery for the last 30 days.
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.