Value Added Tax

Grand Bahama Power Company is a Value Added Tax (VAT) registrant and is authorized to charge and collect VAT on behalf of The Government of the Bahamas.

As of January 1, 2015, GBPC was required to collect VAT from customers on all goods and services.

Effective July 1st2018, the government of The Bahamas increased VAT from 7.5% to 12%.

Effective August 1 residential customers whose power bill is $200 or less including all services are exempted from paying 12%VAT on their bills. On average, this will impact more than 75% of GBPC residential customers.

Customers that qualify can expect to see VAT waived on their bills beginning August 1 as this will reflect energy consumed in the month of July.

VAT will be present on July bills for all customers at a rate of 7.5% representing energy consumed in the month of June.

GBPC is required by law to collect this tax from its customers on all services provided.

No application necessary for the exemption. GBPC will automatically apply VAT only to customers who bills are over $200.

It should be noted to customers that the exemption is on a month-by-month basis.

FAQ

What is the VAT rate?

Effective July 1st VAT will change from 7.5% to 12%  

When will VAT be shown as 12% on my GB Power bill?

Customer will be charged VAT at a rate of 7.5% on their July GB Power bills as it reflects energy consumed in the month of June. The VAT increase will be reflected on customers’ bills effective August 1st as it reflects electricity consumed in the month of July.

What is the electricity VAT exemption?

The electricity VAT exemption is an approved incentive by The Bahamas government for residential customers to be waived from paying the VAT, is their electricity bill is $200 or less.

Who is exempt from paying VAT on their electricity bills?

The exemption applies countrywide for residential customers for both Grand Bahama Power and Bahamas Power and Light customers whose power bill is $200 or less including all services, are exempted from paying 12% on their bills.

Do I need to apply to be exempt?

No application is necessary. GBPC will automatically apply VAT only to residential customers who bills are over $200. Residential customers will only receive the VAT exemption on each month that their power bill is $200 or less.  

What if my electricity bill is more than $200, will VAT be waived on the first $200?

No, the VAT is not waived. To qualify for the exemption your total bill including all services such as Night Guard Lights must be at or under $200.

What can I do to keep my power bill at or less than $200 a month?

There are many every day things you can do to reduce your power intake. Here are 5 simple tips to reduce your energy cost:

Update Your Business Account Information
As required by law, all VAT registrants must include their Tax Identification Number (TIN) on all invoices and billings. To update your business’ client information, please complete our Account Update Form.