Preparing and reviewing VAT returns
In the lead up to this month's first lodgement for Bahrain's largest businesses, we have reviewed many VAT returns and suggest some quick wins:
- Double check the details of tax invoices against the NBR VAT payer lookup tool before recovering input tax.
- Consider VAT return labels and ensure transactions are assigned correctly.
- The Customs bayan must specify your organisation as the importer of record if you want to recover input tax.
- If using Excel, ensure formulas are linked correctly.
- Don't leave your review - or submission - until the last minute.
What if I am unable to make my VAT payments to the NBR?
If you think you will be unable to make a VAT payment, you can apply to the NBR to pay in instalments for a particular VAT period. Applicants must show that they are unable to fully pay the amount of VAT within the period specified in Bahrain's VAT legislation. Once a request has been submitted, the NBR will accept or reject within thirty days. If an application is approved, instalments must be paid within the periods set in the application acceptance or all remaining instalments become due immediately.