Tax Payment Methods for VAT Return in Bahrain

In accordance with the Bahrain VAT Law, a person registered for VAT in Bahrain is obliged to charge VAT for standard-rated supplies from their customers and pay it to the National Bureau for Revenue upon filing the VAT return for each VAT period as and when it is due. The Taxpayer shall deduct the Input VAT paid to his supplier if the same qualifies for the deduction. The difference of the Output VAT collected from the customer and Input VAT paid to various suppliers would be the amount payable/(refundable) to the NATIONAL BUREAU FOR REVENUE.
For making the VAT payment easier the National Bureau for Revenue has launched a new VAT bill payment service in the portal www.bahrain.bh.

What is a VAT return as per the Bahrain VAT Law?
A VAT return in Bahrain is a form prepared by the NATIONAL BUREAU FOR REVENUE that summarizes different kinds of taxable transactions of a taxable person in Bahrain. The VAT return has to be submitted through the online portal of the NATIONAL BUREAU FOR REVENUE, in the month following the end of the VAT period and VAT payment has to be made.
The VAT payer can also opt for simplified return filing if their annual supplies do not exceed BD 100,000 and also if they are not a part of any tax group in Bahrain. The simplified filing can be opted for at any time on the NATIONAL BUREAU FOR REVENUE’s portal and once opted the same will be immediately effective. The VAT payer can also switch back to the full return form whenever they wish to do so.

When to submit the VAT return in Bahrain?

The VAT period for different tax-payers in Bahrain is as follows:

1. The monthly return has to be filed for all those taxpayers whose annual supplies exceeds BD 3,000,000. That is, each month would be a VAT period and VAT return has to be filed by the end of the month following the VAT period.
2. Quarterly return is to be filed for all the taxpayers whose total annual supply will not exceed BD 3,000,000. That is, each quarter would be a VAT period and VAT return has to be filed by the end of the month following the VAT period.
For example, April 2020 to June 2020 will be a VAT period and VAT return has to be filed and payment of the VAT due should be done by 31st July 2020
On submission of the VAT return through the online portal of the NATIONAL BUREAU FOR REVENUE, the NATIONAL BUREAU FOR REVENUE sends an official confirmation receipt to the email ID of the VAT payer.

How to make the payment of the VAT return in Bahrain if the VAT payer is in payable position?
In case the Output VAT collected exceeds the Input VAT, then the VAT payer should pay the difference to the NATIONAL BUREAU FOR REVENUE. The payment of VAT due can be made using any of the following methods:
1. Online and Mobile Banking:
The tax-payer can access their banks online portal and use the Fawateer service and enter the required information as asked by the bank. The tax-payer can also view the payable amount by using the enquire bill option in the online portal.

2. Benefit pay mobile application:
A taxpayer can also make the payment of VAT due through the benefits pay application. The VAT payer has to first download and activate the application in their smartphone. Then he can choose to make Fawateer payment and then select the NATIONAL BUREAU FOR REVENUE and enter the required information to make the VAT payment. The VAT payer can also view the VAT amount due by using the enquire bill option.

3. Bank Branch:
The taxpayer can also make the payment directly through their bank branch. This can be done by visiting the branch and filling in the Fawateer form from the Bank or by submitting a written request signed by the authorized signatory mentioning the VAT amount due and the VAT bill number to the branch.

4. Payment through www.bahrain.bh
This is a new service launched by the NATIONAL BUREAU FOR REVENUE to make the settling of VAT payment easier using debit or credit card.
The taxpayer can access the national portal and select the VAT payment service. All you require is to enter the VAT bill number and VAT registration number to log in. After logging in you may view the VAT amount to be paid and shall make the payment using a debit card or credit card.

What is to be done in case the VAT payer is in a refund position?
In case the input VAT exceeds the Output VAT collected during a tax period then the VAT payer is eligible for a refund.
There are cases in which the VAT payer may be in a refundable position on an ongoing basis. This happens when most of their supplies are zero-rated.
Also, some VAT payers might be in a refundable position during a particular VAT period. This can happen if they have incurred, for example, significant capital expenditure in the given VAT period.
If the line no. 17 of the VAT return form is negative, (that is, refundable) then the Refund Information will appear on the summary section of the VAT return with two option, that is “YES” or “No”:
1. The VAT payer can choose the option “YES” in order to claim a refund. He will also have to specify the receiving IBAN.
2. The VAT payer can choose the option “NO” and carry forward the excess to the future VAT periods and offset the future VAT payables.

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 with 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

We’d be happy to support you – Call us!