Expense management module › Global expense management › Bahamas
Last updated : 11.05.2026
Expense rules in Bahamas.
Bahamas applies VAT at 10%. Caribbean offshore financial center, BSD pegged to USD (1:1).
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1Expense rules & reclaimable VAT
VAT 10% single rate. BSD = USD (1:1 peg).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 10% | Deductible | Tax invoice + TIN |
| Lodging | 10% | Deductible | TIN |
| Alcohol | 10% | Limited | Excluded |
| Fuel | 10% | Deductible | Invoice |
| Transport | 10% | Deductible | Taxi/airfare |
| Gifts | 10% | Non-deductible | Cap |
Receipt
Tax invoice
TIN mandatory
SourcesBahamas Inland Revenue
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesBahamas Inland Revenue
3Per diem and travel allowances
Company policy. Nassau most expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Nassau | $30 | $120 | $220 |
| Freeport | $25 | $100 | $180 |
| Paradise Island | $35 | $140 | $250 |
| Other islands | $22 | $85 | $150 |
Currency
BSD = USD
1:1 peg
SourcesBahamas Inland Revenue
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Monthly/quarterly | Return |
| Non-resident | None | – | Final cost |
| IBC offshore | Special regime | Per licence | Regime |
Limitations
5 years
Keep
SourcesBahamas Inland Revenue
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