A STANDARD purchase receipt showing Value Added Tax (VAT) charges on each item should be made mandatory in the country, according to a leading campaigner.
Bahrain Consumer Protection Society chairman Majid Naser Ahmad said this would ensure customers were not paying tax for items listed under zero-rated or exempt categories.
VAT is being applied at a standard rate of five per cent on telecommunications services, clothing and apparel, hotels and restaurants, other retail goods and vehicles.
Bahrain is also applying a zero-rate on basic food items, some construction services, education and healthcare services, local transport services and the oil and gas sector.
Currently businesses are free to design their billing mode and some companies have been listing the total VAT charges while others have displayed it on each item.
However, Mr Ahmad explained yesterday that enforcing a standard bill format was necessary to ensure people were not cheated by businesses.
It comes after a Bahraini man exposed a leading hypermarket that charged him 5pc VAT on plain bread, which is listed by the government under zero-rated basic food items.
“The person took the effort to check his bill and found that he was charged VAT on plain bread which he raised with the consumer protection manager of the shop,” he told the GDN.
“He was refunded the money and he highlighted the issue to one of the MPs who brought it to our attention.
“This customer got his money back, but my concern is about the many others who may not notice this.
“Ideally, all bills should display VAT status on individual items so that customers will have a clear idea of what they are paying for.”
The GDN previously reported that businesses have been warned of hefty penalties if they charge VAT on any zero-rated products.
Inspectors have been out in force across Bahrain’s markets to ensure the VAT was calculated correctly and that basic commodities and services were not charged.
The society also received complaints from some consumers yesterday that they were taxed for milk, promoting Mr Ahmed to urge people to be fully aware of the items listed under zero-rated VAT which is available on the website of the National Bureau for Taxation, www.nbt.gov.bh.
“Consumers must be fully aware and alert about VAT and they should take receipts for their purchases,” he said.
“All businesses who want to claim tax from consumers should register with the National Bureau for Taxation and display their certificate with the number that should reflect on the receipt they issue.
“Consumers need not pay VAT if this number is not reflecting on the bill and stores must stop the bad practice of not issuing bills.
“Moreover, both selling and buying without a receipt is illegal.
“Also, there should be an article in the Consumer Protection Law, like in Saudi Arabia, where violators are made public through the media and with sterner punishments so that businesses would think twice before they attempt to trick consumers.”
He urged consumers to report any VAT related violations to the national hotline on 80008001.
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