Penalties Applying to VAT IN BAHRAIN

 

An administrative penalty is imposed on taxpayers who commit any of the following acts while dealing with VAT IN BAHRAIN:

Delayed submission of VAT returns or delayed payment of tax, for a prescribed period not exceeding 60 days. The penalty rate in this case would be between 5% and 25% of the tax value to be recognized or paid. Failing to register for VAT within 60 days from the registration deadline, or within 60 days after reaching the mandatory registration threshold limit. The penalty in this case may go up to BHD 10,000. Providing falsified information on the import of goods and services that leads to an increased value declared in tax returns.

For any person who commits the following offences, a penalty of BHD 5000 will be imposed. Not informing the Authority of changes in a registration application or changes in VAT return information within specified dates. Not displaying the price of goods or services inclusive of tax. Failing to provide information requested by the Authority. Not complying with the rules relating to issuing a tax invoice. Violating any rules or regulations of VAT law.

Tax evasion

The following offences are considered tax evasion and carry more significant penalties: Failing to register within 60 days from the last date to register for VAT IN BAHRAIN. Failing to submit tax returns or pay tax due on supplies or imports within 60 days from the due date. Unlawfully deducting input tax and making tax adjustments, or violating the provisions of input tax deductions. Unlawfully claiming tax partly or wholly. Submitting forged or falsified documents, records, or invoices in order to partly or wholly avoid paying tax. Not issuing tax invoices for taxable supplies of goods, services or imports. Issuing tax invoices for non-taxable supplies. Not maintaining organized documentation and accounting books related to tax invoices, imports, and supplies of goods or services.