The Tax return is the official document summarizing for a given tax period, the total output tax due and the total input tax recoverable. This form, prepared by the NBT, has to be populated by all the persons registered for VAT in Bahrain. The form is the same, whether you are subject to quarterly tax periods or monthly ones.
Submission and payment due date
A taxable person should submit a tax return using the NBT’s online portal and make the payment of the tax due by the last day of the month following the end of the tax period. Taxable persons should ensure that payments are made in proper time for it to be received by the NBT on that day.
Where there are no transactions to be reported in a given tax period, a taxable person should still submit a tax return showing no output or input tax.
All tax returns should be submitted through the NBT’s online portal by the taxable person, or by a person authorized to do so on behalf of the taxable person. On submission of a tax return, the NBT sends immediately a receipt through electronic mail. This receipt is the official confirmation of the submission of the tax return through NBT’s portal shall be the actual date of submission of the tax return.
Payment of Tax Due
Once you have identified that VAT is due on your supply of goods or services or on your import of goods, you have to make sure that you pay this VAT to the NBT in accordance with the relevant payment procedure.
The payment of output tax to the NBT is made through filing periodic tax returns. The amounts of VAT due to the NBT will be notified to the taxpayer electronically. When making a payment, the taxable person will provide directly or indirectly his Tax Registration Number and the tax period for which the tax is paid.
(Kindly note that the person liable to pay the VAT applicable on a taxable supply of goods or services or on a deemed supply is required to declare and pay this output tax to the NBT by reporting it in the tax return covering the tax period during which the supply occurred, in accordance with the relevant date of supply rules.
Payment by instalments
You may request the NBT to allow you to pay tax by installments for a tax period provided you can prove that you are unable to pay the amount of tax due in full by the due date. Your application should include:
i) The amount of VAT due to the NBT
ii) The tax period to which this VAT amount relates
iii) The reason for being unable to make the payment on time or supporting the fact that you will face challenges as a result of making payment in full by the due date.
Given the payment deadline, you should apply early enough in order to be notified of the NBT’s decision before the time limit for payment.
Payment of tax due on imports of goods
As a general rule, VAT due on imports of goods is payable by the importer of record to Bahrain Customs at the point of import before they are released for general circulation.
The payment of import VAT by an importer who is a taxable person in Bahrain may be deferred to the submission of the importer’s next tax return. The taxable person who wants to use the deferral must seek authorization from the NBT.
The NBT may allow the deferral of payment of VAT on import if the following conditions are
i) The importer is registered for VAT purposes in Bahrain
ii) The importer is bound by Customs Affairs records at the Ministry of Interior
iii) The importer undertakes:
– To maintain, and submit upon request, records and documents enabling the NBT to verify the import procedures and the correctness of the calculation of the VAT due
– To cooperate and comply with any requests made by the NBT in relation to imports VAT Value of supply and tax due date
– To declare the VAT due on the tax return for the tax period during which the import occurred
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