As private sector entities continue to move at high speed to get relief to those areas in the southern Bahamas where it is most needed, the government is participating in the spirit of the effort with tax breaks - in this instance, exemptions and refunds of the value-added tax (VAT) - for charities and non-profits engaged in hurricane relief efforts.

The Department of Inland Revenue (DIR) issued a statement yesterday publishing a list of "approved charities and non-profit organizations for VAT purposes". These entities are eligible to receive VAT refunds on expenses with respect to hurricane relief efforts.

"It has already been announced, where disaster relief operations are carried out by charitable and non-profit organizations, provisions exist under the VAT Act for exemptions and refund of VAT on expenses," the DIR statement read.

"Charities and non-profit organizations must register online and obtain a TIN (tax identification number) from the VAT DepartmeThey must ensure that the business name and TIN is quoted on all local expense receipts. Charitable and non-profit organizations not named on the list can submit an application online for approval as a charitable organization for VAT purposes using Form 46 Application For Approval of Charities."

The DIR noted that when submitting requests for refunds, approved registrants should complete Form 14a Application for Refunds and Form 15 Schedule of Purchases.

Order of exigency
Meanwhile, reports continue to float around of private sector attempts to import relief materials and being unable to access customs duty exemptions. In the House of Assembly yesterday, Prime Minister Perry Christie disclosed that he had intended to sign exigency orders for relief associated with Hurricane Joaquin, but no details were given.

In 2012, in the aftermath of Hurricane Sandy, the government issued exigency orders permitting residents whose properties were damaged during Hurricane Sandy to import goods duty free for a period. The order was extended at least one time (February 2013) and specified items permitted included building materials, electrical fixtures and materials, household furniture, fixtures, furnishing and appliances, freezers and heaters, materials for clean-up or repairs to property including fences, fishing boats, gear, parts and apparatus, farming equipment and utensils and motor vehicles.

The order only allowed exemptions for Abaco, Cat Island, Eleuthera, Exuma & Cays, Grand Bahama and Long Island.
It is likely the exigency orders signed in this instance would apply only to those islands affected, but for many in the private sector - who have already brought in materials intended to help rebuild - the orders will come out of time.
VAT charities

Approved charities/non-profits:

• Adventure Learning Centre
• Bahamas Association for Social Health
• Bahamas National Trust
• Bahamas Reef Environment Educational Foundation
• Bahamas Urban Development Centeran Youth
• British Legion-Bahamas Branch
• Cancer Society Eleuthera
• Coalition to Protect Clifton Bay
• Freeport Rugby & Football Club
• Friends of The Environment
• Governor General's Youth Award Program
• Grand Bahama Children's Home
• Hands For Hunger
• One Eleuthera Foundation
• PACE Foundation
• Pilot Club of Nassau
• Ride for Hope Bahamas
• The Rotary Club of East Nassau
• Sir Charles Hayward Library
• Sister Sister Breast Cancer Support Group
• The Bahamas Children's Emergency Hostel
• The Bahamas Diabetic Association
• The Bahamas Humane Society
• The Bahamas Red Cross Society
• The Bahamas Red Cross Society-Abaco
• The Bahamas Red Cross Society-Grand Bahama
• The Charitable Arts Foundation
• The National L.E.A.D Institute
• The Nazareth Centre
• The Salvation Army
• The Salvation Army Freeport
• YMCA Grand Bahama Trading as YMCA Grand Bahama

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