Get answers to all your questions about VAT returns in Bahrain: FAQs

What is a VAT return?

A VAT return is a document containing a summary of all the sales and purchases that a business has made over a tax period. It also includes a consolidated list of all imports, exports, and exempt supplies, along with the amount of VAT that has been paid on these transactions.

What is the tax period under VAT?

The tax period for VAT returns is based on the business’ annual turnover. The tax period should not be less than one month. The tax period for VAT returns is based on the annual turnover of the business. Businesses having an annual turnover of over BHD 3 million will have to file tax returns monthly, while businesses having an annual turnover of less than BHD 3 million will have to file tax returns quarterly. The tax period for returns will never be less than one month.

How do I submit my VAT returns?

All taxpayers must submit VAT returns to the Authority for every tax period. The returns are done through the form prepared by the Authority, and must include a declaration of all imports and supplies that the entity has made or received throughout the tax period. Returns are due on the last day of the month following the end of the tax period.

How do I file my VAT returns?

Registered tax persons can file their VAT returns via the electronic system that has been adopted by the Authority.

Submitting a VAT return includes the following steps:

1. All registered taxpayers must submit their tax returns to the NBR electronically using an online tool.
2. The NBR provides the taxpayer with a tool containing personalized access data that allows the taxpayer to log in to an individual online account.
3. The NBR will send an acknowledgement receipt by email when the taxpayer submits their returns online. This will be the official receipt showing that tax returns have been filed by the taxpayer. The submission date as stated on the receipt will be the official date of submission of the tax return.
4. Submitting tax returns through the NBR’s official website will be considered to be a token of approval and acknowledgement by the taxable person concerning the validity of the data contained in the tax return.

What details are required when I file VAT returns?

At the bare minimum, the taxpayer must furnish the following details when filing VAT returns:

1. The value of all the standard-rated taxable supplies and the amount due for the tax period under which the return is submitted.
2. The value of all the zero-rated taxable supplies and the amount due for the tax period under which the return is submitted.
3. The value of all the goods and services that were supplied to the taxable person and the amount of tax they are liable to pay for them.
4. The amount of tax incurred on imports, if any, for the tax period under which the return is submitted.
5. The amount of additional tax due because of adjustments.
6. The total amount of tax due for the tax period under which the return is submitted.
7. The total value of all the inputs paid for by the taxable person during the tax period, and their deductible amount.
8. The value of the net refundable tax from previous tax periods, if any.
9. The amount of tax that can be deducted from imports.
10. The amount of excess tax that is associated with adjustments related to discounts.
11. The amount of deductible tax during the tax period for which the return is submitted.
12. The total amount of net tax that is either due or refundable.

When are VAT returns due?

Every taxpayer must file their VAT return on the last day of the month that follows the tax period. For example, if your tax period is from the 1st of January, 2019 to the 31st of March, 2019, your VAT return will be due on the last day of April, 2019.

What is the VAT return timeline for 2019?

The VAT return timeline for 2019 is shown below.

VAT Return Timeline for 2019:

For businesses with annual turnover over BHD 3 million, the VAT return timeline is as follows:

For businesses with annual turnover below BHD 3 million, the VAT return timeline is as follows:

As shown in the tables above, for companies with an annual turnover above BHD 3 million, VAT returns must be filed monthly. For companies that have an annual turnover below BHD 3 million, returns must be filed quarterly.

Does a business have to file VAT returns even if they haven’t made supplies or purchases?

Yes, every business needs to file VAT returns every tax period even if it has not made any purchases, imports or supplies during the tax period. If there are no transactions, the business has to file a NIL VAT return.

Can VAT returns be amended?

Amendments can be made to VAT returns in case there are errors by following the same process as the original filing. The updated return, once approved by the Authority, will replace the one filed before.