Tax Invoice

Introduction

One of the immediate requirements for businesses getting registered in Bahrain is to issue a VAT invoice. VAT Invoice in Bahrain simply refers to a written or electronic document which the taxable person must issue, and it should contain the details of supply and all other details in accordance with the provisions of law. On every taxable supply of goods or services, the VAT registered supplier should issue a VAT invoice with 5% VAT. The Law and regulation prescribe the requirements of VAT Invoice in Bahrain. In this article, let us have a glance on the VAT Invoice in Bahrain.

Types of VAT Invoices in Bahrain

1. Tax Invoice - A Tax invoice must be issued by the registered business on the supply of goods or services to a VAT registered recipient.

2. Simplified Tax Invoice - A simplified Tax invoice is a type of VAT invoice which a VAT registered supplier can issue in the following cases.

• The recipient of the supply is not registered for VAT in Bahrain

• The total consideration of the supply does not exceed BHD 500.

The table below provides the list of requirements for both a tax invoice and a simplified tax invoice.

Important points regarding Tax Invoices

• Last date to issue invoice - The VAT registered supplier should issue a Tax within 15 days from the end of the month in which the supply took place.

• Currency - The currency to be used in a Tax Invoice is Bahraini Dinar (BHD).

• Rounding off - Where the VAT amount due on a tax invoice is a fraction of a Fils of Bahraini Dinar, the value may be rounded to the nearest Fils, based on mathematical rounding rules.

• Retention period - The tax invoice should be retained by the taxpayer for a period of 5 years from the end of the tax period to which it belongs.

Sample Tax Invoice