An intense crackdown launched by the National Bureau for Revenue (NBR) has resulted in the identification of 157 Value-Added-Tax (VAT) and excise violations until July this year.
The NBR has conducted around 1,000 inspections across the country until last month.
Data released yesterday by the government agency showed its team held 183 inspection visits within the local markets across different governorates in Bahrain and registered 41 violations last month.
This takes the total number of inspections in the first seven months of the year to 997 and violations to 157.
The visits are done with an aim to monitor the market, provide protection for consumer rights and combat VAT and excise evasion, along with spreading awareness about the rightful ways of implementation.
“Effective oversight of the local market has resulted in reporting 41 VAT violations in July and administrative fines have been imposed in accordance with the law,” the NBR said.
“Several violators failed to comply with the conditions for issuing VAT invoices. Some failed to show prices inclusive of VAT or display a VAT certificate in a visible location. Yet others did not issue a VAT invoice.”
The NBR yesterday reaffirmed its commitment to enhancing the level of business compliance within local markets and ensuring adherence to all regulations and legislation for effective implementation of VAT and excise levy, including the Digital Stamps Scheme.
Tax evasion may be punishable by imprisonment for five years and a fine equivalent to three times the amount of VAT due, or by imprisonment for one year and a fine equivalent to double the evaded excise.
The NBR emphasised that the co-operation of businesses and consumers is integral to the success of the ongoing inspection campaigns.
It urged all parties concerned to report violations or evasions of the VAT or excise law by contacting the call centre on 80008001 or through the National Suggestions and Complaints System (Tawasul). Citizens can email vat@nbr.gov.bh for VAT-related queries and ds@nbr.gov.bh for Digital Stamps Scheme queries.
The GDN reported earlier this week that a construction company proprietor was convicted of evading more than BD35,000 VAT though he blamed the Covid-19 pandemic for not receiving payments from clients.
The High Criminal Court sentenced the man to six months in prison and ordered him to pay back BD35,327 of unpaid taxes. He was also fined an additional BD35,327.
The 52-year-old Bahraini businessman faced charges of ‘total tax evasion’ after failing to pay dues on taxable services provided by his construction company over the course of four years.
According to NBR data for the second quarter of the year, there are more than 24,415 registered VAT payers and over 1,265 stores registered for tourists’ refunds.
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