Duty Free Isn't Tax Free: What You Still Pay in The Bahamas
By Mr. Ship It Team · November 4, 2026 · 3 min read
"Duty free" means one thing: the item pays no customs duty. It doesn't mean tax free. A duty-free $800 laptop still costs close to $100 at Customs.
What you still pay
- Customs VAT: 10% of the landed cost, or 5% on listed health and hygiene goods. The landed cost is the item's value plus the processing fee, any levy, freight, insurance and other charges.
- Processing fee: 1% of the item's value, with a $10 minimum and a $1,000 maximum.
- Environmental levy: a flat fee per item on certain goods. Not every item has one.
Example: an $800 laptop and an $800 TV
The laptop is duty free and the TV pays 35%. Each has $30 in freight.
| Charge | Laptop (duty free) | TV (35% duty) |
|---|---|---|
| Duty | $0.00 | $280.00 |
| Processing fee | $10.00 | $10.00 |
| Environmental levy | $5.00 | $5.00 |
| Landed cost | $845.00 | $1,125.00 |
| Customs VAT at 10% | $84.50 | $112.50 |
| Paid to Customs | $99.50 | $407.50 |
Duty free saves more than $300 here, but the laptop still pays $99.50. Our freight, any package protection and the VAT on those services are billed on top.
Small orders feel it most
The $10 minimum fee weighs more on cheap items. A $50 watch is duty free with no levy, but with $10 in freight it pays $17 at Customs: the $10 fee plus $7 in VAT. That's about a third of its price.
If you're buying several small things, ask the store to send them together. Each package is billed on its own, so one store order in one box usually costs less.
Duty-free items with a levy
The levy is per item, so two generators pay it twice, and VAT is charged on it too.
| Duty-free item | Levy |
|---|---|
| Computers, laptops and monitors | $5 each |
| Stoves, 30 inches and under | $5 each |
| Toilets | $5 each |
| Solar and hybrid air conditioners | $10 each |
| Refrigerators with no separate freezer door | $15 each |
| Generators | $20 each |
Duty-free items with 5% VAT
Diapers, baby wipes, sanitary pads, tampons, disposable underwear, bandages, insulin, blood pressure monitors and blood glucose meters are duty free and pay 5% VAT. Many medicines pay 5% as well.
They still aren't tax free. A $40 pack of diapers with $10 in freight pays $13 at Customs: the $10 fee plus $3 in VAT.
Similar items that do pay duty
Rates follow the exact product, so two similar items can pay very different duty.
| Duty free | Pays duty |
|---|---|
| iPad | Cell phone, 10% |
| Apple TV box | Television, 35% |
| Refrigerator with no separate freezer door | Fridge-freezer with a separate freezer door, 35% |
| Stove, 30 inches and under | Stove wider than 30 inches, 5% |
| Solar or hybrid air conditioner | Wall or window air conditioner, 5% |
| Baby and toddler clothing, size 6 and under | Other clothing, 20% |
| Sunglasses | Smart glasses, 10% |
| Manual toothbrush | Electric toothbrush, 35% |
| Shampoo | Hair conditioner, 25% |
| Fresh fruit | Pineapples, 40% |
Two common mix-ups
The $500 exemption doesn't cover shipped packages. It's only for goods residents bring back with them when they travel.
VAT-free groceries don't cover your own food orders. Since April 1, 2026, the law has removed VAT from unprepared food imported and sold by food stores. Plan on 10% VAT when you order food for yourself, even if it's duty free.
Check before you buy
See every item in our duty-free items list, or choose yours in the shipping calculator for the full total. Bahamas Customs makes the final decision on every item, using the supplier's invoice, so a clear customs invoice helps.
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