More than 80 value added tax (VAT)-related violations were recorded by the National Bureau for Revenue (NBR) during the first quarter of the year.
Details released yesterday said the government agency carried out 330 inspection visits during the period as part of its ongoing efforts to ensure business compliance with VAT and excise regulations.
“These visits also aim to maintain market monitoring, ensure high levels of protection for consumer rights, and combat VAT and excise evasion,” said a statement by the NBR yesterday.
It added that effective market oversight resulted in reporting 86 VAT violations, in which administrative fines were imposed in accordance with the law.
The most frequently reported violation was the failure to comply with the conditions for issuing VAT invoices, in addition to other offences such as failure to show prices inclusive of VAT, and failure to display a VAT certificate in a visible location.
“The NBR has intensified oversight efforts which led to identification of suspicious cases of VAT and excise evasion, in which legal actions have been taken against violators. Those who are proven to have committed evasion crimes 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,” it warned.
As of the first quarter of this year, more than 27,505 VAT payers were registered, while over 1,540 stores had registered for tourist refunds.
The NBR conducted 1,216 inspection visits within the local markets in the four governorates last year.
The inspections were conducted over various sectors, such as construction, manufacturing, real estate, retail, plumbing, heat and air conditioning installation, travel agencies, auto repair, manpower supply, jewellery trading and others.
A total of 145 VAT violations were recorded last year, resulting in the imposition of fines, while 19 violations related to the acquisition of excise goods with unpaid excise duties and the supply of excise goods without a valid and active digital stamp, for which administrative fines were paid by violators.
The NBR urged all concerned parties to report any violations by contacting the NBR call centre on 80008001 available 24 hours, seven days a week, or through the national suggestions and complaints system, Tawasul.
More information is available on the NBR’s website www.nbr.gov.bh.
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