Manama, July 10 (BNA): The National Bureau of Revenue conducted 375 inspection visits to the local markets of the governorates of Bahrain during the months of May and June 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 were organized as part of the NBR’s ongoing oversight efforts to protect consumer rights and enhance the level of business compliance, to ensure effective implementation of value-added tax and taxes, which includes the implementation of the digital stamp scheme on cigarette molasses and hookah tobacco. “Products that ensure that companies are aware of the scheme and the presence of mandatory digital stamps on all cigarette and “molasses” tobacco products available in local markets, in addition to spreading the necessary awareness of the procedures to be followed.
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 related to value-added or excise tax, Which includes the scheme of digital stamps on cigarette products that entered into force on October 16, 2022 in the local markets, and was expanded to include “hookah molasses” products that entered into force on June 18, 2023.
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.
Moreover, to ensure that the price offered for goods and services includes value-added tax and to ensure that the value-added tax 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 implementation.
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.
For inquiries related to VAT and taxes or to report any irregularities, the NBR Call Center can be contacted on 80008001 or through the National Suggestions and Complaints System (Tawasul), [email protected] for inquiries related to VAT and [email protected]. gov.bh for digital stamp system inquiries.
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