Amazon Web Services Inc ("AWSI") is required to charge local Value Added Tax ("VAT") on the sale of electronic services to all customers in the Bahamas. Therefore, from 1 October 2023, AWSI will start issuing tax invoices which will have VAT at the current rate of 10% and these tax invoices will be issued to Customers that purchase services sold by AWSI which are received in the Bahamas. VAT will be applied on service charges incurred from that date.
Please review the content below and share the content with your internal teams, if applicable. Key internal teams may include Accounting/Controllership, Tax, and Accounts Payable/Vendor Management teams.
How this affects you
- This change affects all AWS accounts with a Tax address in their Tax Settings page located in the Bahamas and have purchased services sold by AWSI.
- AWSI Customers will be expected to provide a valid Tax Registration Number ("TRN", but also known as a Tax Identification Number-TIN, VAT Registration Number, VAT ID) before 1 October 2023 in order to receive a VAT invoice and recover the VAT paid if they are a VAT registered business customer ("B2B").
- Customers that provide their TRN are treated as B2B customer and customers without a valid TRN are considered to be non-business customers ("B2C"). Both groups of customers will be charged VAT at the current rate of 10% but the type of tax invoice issued by AWSI to B2B and B2C customers will be different.
- B2C customers will receive a commercial invoice as well as a VAT Sales Receipt ("VSR") which will contain VAT charged on AWS service charges. This is effective 1 October 2023.
- Customer accounts with a valid TRN will be charged VAT and be issued both the commercial invoice and a VAT invoice. This is effective 1 October 2023.
- If you are a Partner Reseller, you should update your TRN in your tax settings and apply Tax Inheritance to ensure all accounts inherit your tax address and TRN. It is your responsibility to then charge tax and issue Tax Invoices to your customers as appropriate. Please consult with your tax adviser if you have further tax questions.
- This change does not affect purchases made from third-party ("3P") Sellers on the AWS Marketplace. AWSI is not responsible for collecting VAT on sales made by 3P Sellers. It is the responsibility of the 3P Sellers to issue tax invoices to their buyers and ensure that the VAT is collected and properly accounted for with the Bahamian Revenue Authorities.
- B2B customers may be eligible to claim a VAT credit (Input VAT) paid on taxable services provided the conditions (as specified by the relevant VAT law) for claiming input VAT are met while B2C customers may not be eligible to claim input VAT. Please reach out to your tax advisers for further guidance.
Prior to 1 October 2023, please review and update your AWS account information:
- If you are a VAT-registered business and have a TRN, visit the Tax Settings page of the AWS Billing Console and confirm/update the TRN and Business Legal Name and Address for your AWS account(s).
- If you do not have a TRN, visit your account page (via My Account) of your AWS Console to confirm/update your contact address. Additionally, please visit the Payment Methods page of your AWS Console to confirm/update your billing address.