VAT Return Filing in Bahrain | 4 Simple Steps to File your VAT Return in Bahrain

With the introduction of VAT in Bahrain ,  filing for VAT Return in Bahrain is obligatory for all taxable businesses who has registered for VAT in Bahrain. VAT Return filing should be progressed as per the Tax Period mentioned by The National Bureau for Revenue (NBR).

Steps for VAT Return Filing in Bahrain

VAT Return Filing can be filed by those taxable entities in Bahrain by following the below mentioned steps:

Step No. 1: Go the NBT website  and click VAT E-Services, Tax Payer Filing and Login with the registered VAT email address.

Step No. 2: You will now be able to navigate your VAT Return Form and fill all the necessary details as requested.

Step No. 3: Make the payment ready for VAT. Taxpayers should ensure that payments are made in proper time for it to be received by the NBR on that day.

Step No. 4: Submit your VAT Return Form Once you submit your VAT Return Form you will receive a notification sent by NBR to acknowledge the receipt of your submitted VAT Return Form via email and SMS to the taxpayer. Kindly note that electronic mediums of acknowledgement is not an official receipt. The official receipt which will be in PDF format will be available on the taxpayer’s portal account with the NBR.

How to fill your VAT Return Form?

Below shown is how exactly your VAT Return form will appear after you have logged in to your Tax portal.

The first thing that you should ensure once that you have registered for VAT in Bahrain is that you should file for your VAT Return in the specific VAT Return Filing period prescribed by NBR. VAT Returns should be submitted, and the payment should be made by the last calendar day of the month following the end of the VAT period.

Understanding your VAT Return Form:

1. What is Standard Rated Sales?

Standard Rates Sales is the total amount of standard rated goods and services that has been sold during a particular Tax period in the Kingdom of Bahrain excluding the VAT amount that has been collected. It also includes the adjustments like return of goods and services by customers, sales as per tourist refund scheme on which the vat declared or paid, bad debts etc.

2. What is Sales to registered taxpayers in other GCC States?

Sales to registered taxpayers in other GCC States means the total amount of sales that has been made to the GCC states. Kindly note all adjustment to sales that has been made to the registered customers in GCC will be treated asExports until an integrated GCC system has come up.

3. What is Sales subject to domestic Reverse Charge Mechanism?

Sales subject to domestic Reverse Charge Mechanism means the total amount of sales and adjustment to sales which is standard rated but has been sold to a domestic purchaser who can apply for Domestic Reverse Charge Mechanism as granted by NBR with a valid certificate. The amount of sales and adjustments also includes the previous periods.

4. What is Zero-Rated Domestic Sales?

Zero-Rated Domestic Sales is the total amount of all goods as well as services that is zero-rated and sold in The Kingdom of Bahrain during a particular Tax period. Adjustments like bad – debts written off and Zero Rated sales return can also be adjusted at the same time in the Zero – Rated Domestic Sales.

5. What is Exports?

Under Exports Column total amount of standard rated, zero rated & exempted goods and services that has been sold during a Tax period to the countries outside the Kingdom of Bahrain should be recorded, the amount should exclude the VAT that has been collected. Adjustments like, sales return of exported goods, bad debts written – off on overseas receivables that has been made during previous return filing period can also be made. 

6. What is Exempt Sales?

Exempt Sale is the sale of exempted goods and services in the Kingdom of Bahrain and the total amount of exempted goods and services that are sold during the particular period which should be recorded. The amount should exclude the VAT that has been collected. Adjustments of similar sales that has been made during previous return filing period can also be made.

7. What is Total Sales?

Under total Sales column, the amount is automatically calculated. It is the accumulated figure of the amount of goods and services that has been sold.

8. What is Standard Rated Domestic Purchases?

Standard Rated Domestic Purchases are those standard rated purchases of goods and services in The Kingdom of Bahrain that has been made during a Tax period. The adjustments of similar purchases of previous filing can also me made here. Note that the figure in the amount column is excluding the VAT paid.

9. What is imports subject to VAT either paid at customs or deferred?

In the column imports subject to VAT either paid at customs or deferred you must enter the total amount of goods purchased from abroad (either paid or deferred) during a Tax period. The purchases should be standard rated imports or adjustment or apportionment to similar kind of goods purchased or deferred in previous VAT Return period.

The designated importers should be very specific on their standard rated imports or adjustments / apportionments that has been made to the imports.

Kindly note that the VAT amount which is auto-calculated should match the VAT amount that is paid to the Customs. For imports of services where VAT is not been paid at Customs, those kinds of transactions shall be reported under reverse charge mechanism.

10. What is Imports Subject to VAT accounted for through Reverse Charge Mechanism?

In this column you have to put the Total purchase amount of the goods from other GCC countries and services that was purchased during the current period. Adjustment or apportionment can be made to similar services in previous VAT Return period.

11. What is purchase subject to domestic Reverse Charge Mechanism?

You must enter the purchases during the current period that were standard rated under a grant from NBR on domestic Reverse Charge Mechanism.

Adjustments made with regard to return of purchases under the domestic reverse charge mechanism should not be reported here because VAT has not been paid at the time of purchase.

12. What is purchases from non-registered suppliers, zero rated, exempt purchases?

Purchases from non-registered suppliers, zero rated, exempt purchases includes the Total amount of goods and services that are purchased during the current VAT Return period.

The purchases should be:

1. zero-rated purchases in Bahrain
2. or zero-rated imports
3. or purchases from a non-registered supplier
4. or exempted import or local purchases
5. or adjustments that is made to similar goods and services purchased during previous VAT Return Periods

13. What is Total purchases?

Total purchases are an accumulation of purchases figures that has been calculated automatically. It excludes the VAT amount that has been made during the purchases.

14. What is Total VAT due for current period?

Total VAT due for current period is an auto populated calculation which is the VAT collected on sales and recoverable VAT that has been paid while making purchases.

15. What is Corrections from previous period (between ±5000BHD)?

While filing your VAT Return if you have made a mistake on your sales/purchases your can correct it using this column. For this correction the amount has to be between BHD ±5,000. You should specify only the VAT correction amount and not the sales or purchases amount. If there are any other VAT corrections, submitting a Self-Amendment form is necessary.

16. What is VAT credit carried forward from previous period(s) (automatically calculated)?

This column determines the total amount of credit that is there in your VAT account from the previous VAT returns which is not used to offset any outstanding liabilities or which is not refunded. This amount can be used to offset the VAT liability (if any) for current return.

1. What is Net VAT due (or reclaimed) (automatically calculated)?

This shows the total amount of VAT payable or credit for your current VAT return. If there is any negative amount for VAT credit, that can either be refunded or carried forward to set off the VAT liability for the subsequent VAT Return Period.

Emirates Chartered Accountants  offer VAT Return Filing Services in Bahrain. Our tax officers are professionally equipped and well versed with the tax laws of the Kingdom of Bahrain and have in hand experience of handling VAT in other GCC countries. When VAT Return is Filed by our Tax Officers there is precision on the segregation of supplies that should be filled in your VAT Return form which would minimize the risk of penalties and fines that would incur for non-compliance of VAT Law.

Our VAT Services in Bahrain are:

• VAT Registration 
• VAT Training 
• VAT Implementation
• VAT Return Filing 
• VAT Consultancy
• Accounting for VAT Compliance