Preparing and reviewing VAT returns
Continuing on from our suggested quick wins in last week's TaxFlash, we have set out some additional points to consider when preparing and reviewing VAT returns:
- Check date of supply rules to ensure you are reporting transactions in the correct tax period.
- Where making supplies to walk-in customers, check the simplified tax invoice rules.
- If zero-rating for new construction, consider whether you need a certificate confirming the construction is for a new building.
- If issuing credit notes, ensure all documentation is correct.
What documents do I need to be able to deduct input VAT?
For a registered business to deduct input VAT, retain:
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Valid tax invoices (as set out in the VAT law) for all goods and services acquired
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Customs documents for imports which indicate that the business is the importer of the goods in accordance with GCC customs law - ensure the bayan contains the correct name and TIN
When can I recover paid input VAT?
Generally, you have five years to claim Bahrain input VAT - so if you are struggling to meet filing deadlines, consider delaying the input VAT recovery to a later tax period.
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