Manama, May 18 (BNA): The National Bureau of Revenue conducted 281 inspection visits to local markets in the governorates of the Kingdom of Bahrain during the months of March and April 2023.
The campaigns resulted in the reporting of violations that necessitated the imposition of administrative fines in accordance with the value-added tax and excise tax law, in addition to monitoring many suspicions of value-added tax and tax evasion that may require the precautionary closure of many companies.
NBR will take legal action against the offending companies, and refer those who are found to have committed one of the offenses of evasion to the appropriate authorities to file a criminal case against them, which may be punishable by imprisonment for five years and a fine equivalent to up to three times the amount of VAT due according to the VAT law, or imprisonment For a period of one year and a fine equal to double the tax evaded according to the Value Added Tax Law.
These campaigns have been organized as part of the NBR’s ongoing oversight efforts to protect consumer rights and enhance the level of trade compliance, to ensure effective implementation of VAT and taxes.
Campaign efforts include the implementation of the digital stamp scheme on cigarette products to ensure that companies are aware of the scheme and the mandatory presence of digital stamps on all cigarette products available in local markets, in addition to spreading the necessary awareness of the procedures. to be followed up.
These efforts come as part of the regular inspection and control procedures that are implemented using advanced tools adopted by the NBR during inspections, which contribute to addressing tax evasion, and preventing the possession, trade, sale or supply of products that have not fulfilled their obligations regarding value-added tax or tax, Which includes the digital stamp scheme on cigarette products in local markets that came into effect on October 16, 2022.
NBR also confirmed the continuation of inspection campaigns aimed at urging all companies registered with NBR to comply with the application of legislation such as the obligation to issue VAT invoices for all supplies while ensuring that they meet the terms and conditions.
Furthermore, to ensure that the price offered for goods and services includes VAT, and to ensure that the VAT registration certificate is placed in a visible place in the facility, among other obligations to prevent violations and ensure the success of the various stages of the application.
NBR confirmed that all companies, institutions and individuals whose annual supplies exceed the mandatory registration limit, which is 37,500 Bahraini Dinars, need to complete the registration process for VAT purposes to avoid legal action being taken against them, as it is considered one. One of the cases of value-added tax evasion that will be punished with imprisonment for five years, and a fine of three times the amount of value-added tax due according to the value-added tax law.
MI