The Tribune

THE Ministry of Finance has advised that all donations shipped from outside The Bahamas for Hurricane Joaquin victims are eligible for exemptions of both VAT and Customs duties, once advance notice and documentation is given to the Ministry of Finance, or the request is sanctioned by the National Emergency Management Agency (NEMA).

The ministry also said that disaster relief operations carried out by charitable and non-profit organisations are eligible for VAT exemptions and refunds of VAT expenses.

However, these groups must register online and obtain a tax identification number (TIN) from the VAT Department. They must ensure that the TIN is quoted on all of their local expense receipts, the ministry said in a statement.

The ministry said most charities and non-profits already have a TIN, however others have been encouraged to register.

In most cases, the process of getting a TIN takes less than 24 hours, the ministry said.

Where charities incur direct expenses on their relief operations, whether for supplies or charter operations, they can apply to the VAT Department for refunds, the ministry said. Refunds, however, cannot be provided to private individuals for goods donated to charities, whether purchased or used.

However, where monies are donated, the relief organisations qualify for the VAT refund, when they use these funds, the statement said.

“To avoid being victims of fraudulent schemes, it is strongly recommended that persons making donations to relief organisations request proof that the organisation has a tax identification number,” the ministry urged.