Bahrain VAT Return Format Explained

Introduction

The taxpayer needs to furnish the details in the return format as prescribed by the National Bureau for Revenue (NBR). The VAT Return format is broadly categorized into ‘VAT on sales’ and ‘VAT on Purchases’. This is further categorized into different rows in which details of supplies need to be captured along with VAT. In total, there are 17 rows in VAT return form and let us understand each of these in detail.Below is the VAT return format for filing return.

VAT Return Format

VAT on Sales

Financial information (annual value of supplies, expenses, imports and exports) In this section, you need to mention the details of sales, output VAT and adjustment, if any. This consist of 7 sub-section from 1 to 7.

• 1. Standard rated sales: Here, you need to report the total amount of standard-rated goods and services (attracting 5% VAT) sold during the current period in Bahrain. The value to considered here is excluding VAT and should be reported in column ‘Amount (BHD)’. The VAT collected on these supplies needs to be reported in separate column ‘VAT amount (BHD). If there are any adjustments of similar sales made in the previous reporting periods can also be reported under this.

• 2. Sales to registered taxpayers in other GCC states: Total amount of sales to GCC states and all adjustments to sales to registered customers in GCC states will be treated as exports until integrated GCC customs system goes live. Thus, for the time being, this field will be “display only” and not editable.

• 3. Sales subject to domestic reverse charge mechanism: All the sales made under the Domestic reverse charge mechanism should be reported here.

• 4. Zero-rated domestic sales: Total value of all goods and services sold during the current period that are zero-rated.

• 5. Exports: Value of taxable (standard-rated and zero-rated) and exempt supplies made during the current period to the countries outside Bahrain.

• 6. Exempt Sales: The value of exempt supplies made during the tax period should be reported here.

• 7. Total Sales: The Aggregated value of supplies declared above will be automatically calculated.

VAT on Purchases

Here, you need to furnish the details of purchases. This consists of 5 sub-sections from 8 to 13. Please note, the value of input tax credit which is restricted or which you are not eligible to claim Input VAT should be reduced from the total and only the net value needs to be mentioned in the following sections.

• 8. Standard rated domestic purchases: You need to declare the value of purchases on which you are eligible to recover Input Tax and the amount of Recoverable Input Tax in the VAT return period.

• 9. Imports subject to VAT either paid at customs or deferred: Value of import of goods on which VAT is paid at customs or deferred should be reported here.

• 10. Imports subject to VAT accounted for reverse charge mechanism: Services imported should be accounted on reverse charge mechanism and the value of all such supplies along with recoverable input tax need to be reported.

• 11. Purchases subject to domestic reverse charge mechanism: All purchases made under the Domestic reverse charge mechanism should be reported here along with recoverable input VAT.

• 12. Purchases from non-registered suppliers, zero-rated/exempt purchases: Total amount of goods and services purchased during the current period that were either: Zero-rated and purchased in Bahrainzero-rated and imported from a country outside of Bahrain Purchased from a non-registered supplierExempt and either bought in Bahrain or imported from a country outside of Bahrain

• 13. Total purchases: The Aggregated value of goods and services purchased (as declared in the above sections) during the tax period will be auto-calculated.
  

Other Sections

The details in these sections are auto-calculated to arrive the Net VAT which will either result in VAT payable or refund.

• 14.Total VAT due for the current period (automatically calculated): Net VAT calculated from aggregated VAT collected on sales and recoverable VAT paid on purchases.

• 15.Corrections from previous period (between ±5000BHD): If corrections to the previous return entail a VAT liability adjustment less than BHD 5,000 or greater than BHD -5,000 (reduction), then the taxpayer must specify the VAT adjustment (and not sales or purchases amount) in this field. For any other VAT adjustments, the taxpayer has to submit a self-amendment form.

• 16.VAT credit carried forward from previous period(s) (automatically calculated) : Total amount of credit in your VAT account from previous returns that has not been used to offset any subsequent liabilities or not been refunded will be captured automatically here. This amount will be used to offset the VAT liability (if any) of current return.

• 17.Net VAT due (or refund) (automatically calculated): The total amount of VAT liability or credit for the current return. A negative amount is VAT credit that can either be refunded or carried forward to offset VAT liability for the subsequent periods.The Tax Group shall, by a power of attorney, appoint one of its members as a representative of the Tax Group.