TDT | Manama The Daily Tribune – www.newsofbahrain.com Twenty-seven violations related to the value-added tax have been recorded since the amended VAT law took effect early this year. It is the result of intensified inspection clampdown on shops and commercial establishment
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Twenty-seven violations related to the value-added tax have been recorded since the amended VAT law took effect early this year. It is the result of intensified inspection clampdown on shops and commercial establishments conducted by the Ministry of Industry, Commerce and Tourism, in cooperation with the National Bureau of Revenue (NBR).
Inspections were carried out on 40 shops and commercial establishments in various governorates in the Kingdom of Bahrain to ensure adequate implementation of the readjusted VAT.
Competent authorities are taking legal measures against the violating establishments as well as outlets which face tax evasion charges. Lawbreakers can be jailed for five years and fined up to BD10,000, or even three times the amount evaded.
The Ministry and NBR stressed the importance of complying with readjusted regulations, urging the public to lodge complaints and and report VAT violations via hotline 80008001 round the clock or email vat@nbr.gov.bh.
Standard rate
Under the amended VAT law, the standard rate of 5% is raised to 10% starting January this year. The doubling of VAT is a fiscal reform that is part of plans to boost revenues and sustain the Kingdom’s economic progress and recovery from the coronavirus pandemic. The VAT increase could contribute receipts of about 3% of gross domestic product in the next few years, up from about 1.7% this year.
