VAT Return post VAT rate increase

A VAT return is an official document submitted to the NBR which summarizes the total of sales, purchases, and the VAT liability/refundable amounts.

The VAT return form is available in the VAT returns icon after logging into the NBR.

Before filing the VAT return you will be asked to review certain conditions. The fields in the VAT return form will depend on the answers provided for these questions.

This blog intends to detail the field of the VAT return form when both the questions are answered “YES”. These fields are detailed below.

1(a): Standard Rated Sales at 5%:

In this field, we should provide the total value of sales which is subject to VAT at 5%. Any adjustment to the value of 5% sales disclosed in the previous returns shall be included in the adjustment column.

1(b): Standard Rated Sales at 10%:

The value of total sales which is subject to VAT at 10% during the VAT period should be disclosed in this field. Any adjustments to the value of 10% sales disclosed in the previous VAT returns should be included in the adjustment column.

2: Sales to registered VAT payers in other GCC states:

This field will be activated only once the integrated GCC customs system goes live. Until then, this field is out of scope for our discussion.

3: Sales subject to domestic reverse charge mechanism:

Total sales made to the customers who are eligible for the domestic reverse charge mechanism should be disclosed in this field. The domestic reverse charge mechanism is applicable after obtaining the necessary approval from the NBR. Any adjustments to the value of such sales disclosed in the previous VAT returns should be included in the adjustment column.

4: Zero-rated domestic sales:

The total value of zero-rated supplies provided during the VAT period should be disclosed in this field. Any adjustments to the value of Zero-rated sales disclosed in the previous VAT returns should be included in the adjustment column.

5: Exports:

The total value of export of service and export of goods made during the VAT period should be disclosed in this field. Any adjustments to be made to the value of exported goods and services made and disclosed in the previous VAT returns should be disclosed in the adjustment column.

6: Exempt Sales:

The Total Value of goods and services which are exempt as per Chapter 15 (Article 81 to 85) of the Executive Regulations of the Bahrain VAT law, should be disclosed in this field of the VAT return. Any changes in the Value of exempt supply disclosed in the previous VAT return should be disclosed in the adjustment column.

7: Total Sales (Automatically calculated)

8(a): Standard rated domestic purchases at 5%:

The total value of purchases subject to VAT at 5% made during the VAT period (which is used for making taxable supplies only) and where the Input VAT on such purchases are recoverable subject to normal input VAT recovery rules should be disclosed in this field of the VAT return.

Any changes to the purchases disclosed in the previous VAT periods should be disclosed in the adjustment column.

8(b): Standard rated domestic purchases at 10%:

The total value of purchases subject to VAT at 10% made during the VAT period (which is used for making taxable supplies only) and where the Input VAT on such purchases are recoverable subject to normal input VAT recovery rules should be disclosed in this field of the VAT return.

Any changes to the purchases disclosed in the previous VAT periods or any apportionment to be made should be disclosed in the adjustment column.

9: Imports subject to VAT paid at Customs:

 The total value of Imports on which VAT was paid at the customs is to be disclosed in this field. The import VAT can be claimed subject to normal Input VAT recovery rules.

10: Imports subject to deferral at customs:

The total value of goods imported from outside Bahrain on which import VAT at Standard rate was deferred should be disclosed in this field. The NBR will inform the taxpayers once it starts accepting requests for import VAT deferral.

11(a): Imports subject to VAT accounted for through reverse charge mechanism at 5%:

The total value of import of goods and services subject to VAT at 5% from non-resident supplier accounted for through reverse charge mechanism and any adjustments to be made to such purchases should be disclosed under this field.

11(b): Imports subject to VAT accounted for through reverse charge mechanism at 10%:

The total value of import of goods and services subject to VAT at 10% from non-resident supplier accounted for through reverse charge mechanism and any adjustments to be made to such purchases should be disclosed under this field.

12: Purchases subject to domestic reverse charge mechanism:

The total value of purchases subject to the domestic reverse charge mechanism should be disclosed in this field. The domestic reverse charge mechanism shall be applied after obtaining approval from NBR.

13: Purchases from non-registered suppliers, zero-rated/exempt purchases:

The total value of the following purchases made during the VAT period should be disclosed in this column:

• Purchases from non-registered dealers in Bahrain.
• Domestic Zero-rated purchase of goods and services.
• Zero-rated import of goods and services.
• Purchase of exempted supplies.

14: Total purchases (automatically calculated)

15: Total VAT due for the current period (automatically calculated):

16: Corrections from the previous period (between ±5000BHD):

Any corrections to be made to the values disclosed in the previous VAT period which is less than BHD 5000 can be made through this field.

17: VAT credit carried forward from the previous period(s) (automatically calculated):

18: Net VAT due (or reclaimed) (automatically calculated):

Our Tax Experts in Emirates Chartered Accountants Group Bahrain believe in a proactive approach to tax advisory services with a cost-effective and tailor-made option that is preferred by businesses all over. Our team of professionals is well versed in the Bahrain VAT Law as well as the UAE VAT Law  They are also equipped with practical experience of implementing VAT in UAE and VAT in Bahrain.

Our wide range of services includes:

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

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