Bahrain Refers VAT Evasion Cases to Public Prosecution

The National Bureau for Revenue (NBR) has referred several cases of value-added tax (VAT) evasion to the Public Prosecution after businesses failed to pay the due amounts on taxable goods and services.

The NBR explained that some VAT-registered entities had collected VAT from their customers and declared it in their tax returns but failed to pay the amounts within the legal timeframe. In some cases, payments were delayed for more than 120 days, with the total unpaid VAT exceeding BHD 160,000.

According to Article 63 of the VAT Law, this constitutes tax evasion. The law imposes penalties of up to five years in prison and fines of up to three times the evaded amount for individuals. Legal entities may face fines of up to six times the unpaid VAT under Article 64 of the same law.

The NBR reiterated its commitment to enforcing VAT regulations and urged all registered businesses to submit their VAT returns and settle payments on time to avoid legal action