EDITOR, The Tribune.
After a visit to the United States culminating with a Customs inspection, I find I need a lesson on VAT as it relates to Customs Duty.
After a smooth flight with Bahamas Air, following a harrowing experience with security at Miami airport, I thought I would have no further problems. However, while having my duty worked out by the very pleasant customs officer I heard the word VAT mentioned and I questioned how VAT could be charged on customs duty when duty was neither goods nor services. I received an answer to the effect that customs officers did not make policy, they merely carried out policy.
However, when I was told that after claiming my exemption and taking into account my non-dutiable items my duty was $36 but my VAT charges were $109, naturally I needed an explanation.
I was then told that the VAT charge was not based on the duty but on the total amount I spent. Hold on, I said, but I paid sales taxes in Florida why am I paying sales taxes again under the guise of VAT? The same explanation relating to policy was given. So I paid the duty and the VAT. But, I want someone to explain to me why VAT is being charged either on duty or under the guise of sales taxes because I am totally confused.
JEANNE THOMPSON
Nassau,
November 11, 2017.
Comments
ohdrap4 6 years, 5 months ago
i traveled abroad three times since vat, and in those three times, i was charged duty plus vat on the excess of 300 exemption, not on the total amount purchased/
it seems that the letter writer was charged vat on the total amount of her purchase , including any duty free items.
when i receive duty free items through a courier, i pay vat on those.
suppose my invoice is:
100 at 20% duty 100 duty free items 20 shipping
i pay vat on the total 220, 16.50 then i pay 20 duty and 1.50 vat on the duty, 21.50
my total bill is 38.00.
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