BizStats Business Support Co. W.L.L.- Bahrain

WHERE CAN WE HELP YOU

VAT
Services

Our tax experts will give you practical advice and insight that ensures you manage your tax affairs effectively today and in the future. We can help, whatever the issue.

What is VAT?

VAT means Value Added Tax. An indirect tax charged on a supply of goods and services at any point in the supply chain and is payable by anyone consuming the goods or services being supplied. The tax is payable to the Government.

What needs to be done as business owner?

Three things has to be done as follows:

Register for VAT
Submit returns periodically to the tax authorities
Pay the tax amount due on or before due date

How does VAT works?

A 5% initial VAT rate will be set, unless your goods or services is zero rated or VAT exempt. VAT will be calculated based on the consumption of goods and services. Businesses can claim credit for VAT paid on their business-related expenditures, as illustrated on the chart below.

What will happen if not VAT Compliant?

Some of the consequences will be;

Failure to register attracts a fine of up to BD 10000.
Failure to submit required information to the Tax Authorities attracts a fine of up to BD 5000.

What is the possible impact on my business?

The impact of VAT varies from one company to another depending on the nature of business and the complexity of operations and the accounting system in place.

Some of the common effects are:

Cash flow: claimable input tax may take time to receive from Government.
Tax accounting: additional administrative budget to account for the VAT.
Financial reporting: more transparency will be required in reporting.
Compliance process: preparation and filing of VAT returns.

How we can help?

We has built a team of tax professionals ready to help your Company to ensure that your transition to VAT is smooth and efficient, from planning, impact assessment, compliance to implementation.

VAT Registration

VAT (Value Added Tax) registration in Bahrain is the process through which a taxable entity in Bahrain is required to get registered for VAT in Bahrain. Upon registration, a dedicated VAT account number will be assigned to the entity.

The obligation to register applies for both resident persons in Bahrain and non-resident persons that have economic activity in the Kingdom. The VAT registration will allow these persons to be identified with the NBR as “taxable persons” .These “taxable persons” should remit the VAT collected on their transactions to the NBR and can recover the tax VAT charged on their expenses.

An entity has to apply for VAT in Bahrain registration once the Turnover is as given below and has exceeded the threshold as specified.

Any taxable persons in Bahrain with a turnover exceeding or expected to exceed BHD 5 Million annually should register for VAT by December 20th, 2018.
Any taxable persons with a turnover exceeding or expected to exceed BHD 500,000 and BHD 5,000,000 should register for VAT by June 20th, 2019.
Any taxable persons with a turnover exceeding or expected to exceed BHD 37,500 and BHD 500,000 should register for VAT by December 20th, 2019
Any taxable persons over BHD 18,750 in annual supplies are eligible for voluntary registration.

The documents that are required to register for VAT in Bahrain is as follows:

Copy of Commercial Registration Certificate
Independent Auditors Report
Audited Financial Statement
Expense Budget Report
Proof of relationship between HQ and Subsidiary
Customs Registration Certificate
Copy of Association/Partnership agreement
Copy of Certificate of Incorporation
Copy of Personal Identification of the Designated Person

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VAT Training

With the onset of Value Added Tax (VAT) it has become necessary that the businesses in the Kingdom of Bahrain should transform some of the practices that were followed conservatively and comply with the new rules and regulations and for this transformation, VAT Training to the employees of respective departments is very necessary and important in order to comply with the changes.

We will be providing training on Bahrain VAT Law to the management and employees. This can be further tailored according to the company’s activity and supply chain that how VAT in Bahrain will be applicable.

We have a dedicated team of indirect tax specialists to give you the VAT Training which examines the rules and regulations of Bahrain VAT law and clearly demonstrates the procedures and controls.

The training will give you a complete insight and understanding of VAT and how it works, covering all the main topics.

VAT Implementation

With the VAT implementation in Bahrain from 1st January 2019 onwards, all companies are required to register and comply with all the VAT requirements. VAT is an indirect tax which is charged at every level supply of goods or services or both. All businesses need to take necessary steps for VAT implementation in Bahrain.

The challenge for the business community in Bahrain is to understand the new VAT Law and to comply and implement in their business.

We offer support to the businesses for VAT implementation in Bahrain. Our tax specialists will help you to plan an effective approach in every aspect of your business and minimize the risk and thereby eliminating penalties due to non-compliance of VAT Law.

Steps to be involved in VAT implementation:

Understanding the business model.
Analysing the taxability on transactions.
Training to the Management & Employees.
Analysing the impact of VAT on your business.
Supply Chain Impact assessment & restructuring.
Registration for VAT.
Accounting systems under VAT.
Invoicing under VAT.
Guidance and support for filing of first VAT Return.

VAT Return Filing

According to the Bahrain VAT law and with the introduction of VAT in Bahrain, every taxable person is required to submit their VAT Returns under e-services through an online portal of the National Bureau of Revenue (NBR). VAT Return Filing has to be done using the online portal of the NBR.

We will help you to fill the VAT Return Filing Forms with all relevant information within the deadline prescribed by the authority.

We shall review and compile all the information that is required for filing the tax return, compute VAT receivable and VAT payable account.

We shall also undertake the verification of the Tax Invoices issued and received, Tax Credit/ Debit Notes issued and received and other documents relevant.

We have a dedicated team of indirect tax specialists to assist businesses on Tax matters.

We can support you in the following areas:

We will visit your office on a periodical basis (weekly/monthly/quarterly) to compile the information for filing the VAT Return in accordance with the provisions of Bahrain VAT law, and prepare VAT Return of your company.
We will review all your business transactions for VAT return.
We will reconcile your VAT return with the books of accounts.
Verification of agreements, contracts and documents.
We will monitor each and every transaction and our reports give you the most comprehensive picture of your finances.
We ensure that the VAT returns are filed within the specified time in each tax period.
Guidance for the payment of Minimal Tax Liability as per the provisions of the Bahrain VAT Law will be advised.

VAT Consultancy

Bahrain has entered into the world of Value Added Tax (VAT) from 1st January 2019. VAT in Bahrain has led all businesses in facing several challenges while implementation and its execution. VAT Implementation in Bahrain should ensure that the process and methods adopted by the businesses are VAT compliant.

We provides expert tax advisors and Tax professionals who have relevant industry-specific experience in implementing and advising on Tax related matters.

We Provide;

Accurate, worthwhile and cost-effective VAT advisory services for the issues confronted by the businesses.
Impact Analysis of VAT.
Formulating solutions and preparing for recommendations designed to provide advice on taxation for clients.
Clarifications of doubts relating to VAT through telephone or email or direct meeting.
Handling industry-specific issues with detailed guidance to comply with the Bahrain VAT law.
Updates on any Bahrain VAT related clarification or issues coming across during the normal course of operation.

Accounting
for VAT

VAT in Bahrain requires proper maintenance of books of accounts in compliance with the Bahrain VAT law. VAT accounting involves verification of supporting documents in purview of law, recording of transactions as per accounting standards and preparation of financial statements.

The financial statements shall be kept for five years after the end of the tax period to which they relate:

For capital assets, for five years after the end of the tax period in which the adjustment period of these assets ends
For real estate assets, for 15 years after the end of the tax period to which they relate.

Documents to be maintained while complying for VAT:

Suppliers invoices
Suppliers invoices
Credit Notes
Tax Credit Notes – issued and received
Debit Notes
Tax Debit Notes – issued and received
Tax Invoices & commercial invoices issued
Export documents viz, Bill of Entry, bill of lading etc.
Tax Invoices received
Tax Credit Notes received
Import documents including Bill of Entry & any other documents relevant
Purchase invoices – overseas suppliers including services
Contracts and agreements

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BizStats About Us

Understanding your business is paramount to us at BizStats. Delivering a range of professional services at a fraction of the costs traditionally associated with them, we can help to grow your business.

OUR LOCATION Where to find us?

Salmaniya Avenue, Kingdom of Bahrain

+973 3350 6024

info@bizstats.net

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