Bahrain: VAT violations identified during field inspections
The tax administration detected 35 violations of VAT rules during field inspections
The tax administration detected 35 violations of VAT rules during field inspections
The tax administration (in cooperation with the Ministry of Industry, Commerce and Tourism) recently conducted field inspection of 80 commercial establishments and, as a result, detected 35 violations of the value added tax (VAT) rules.
In Bahrain, the standard rate of VAT increased to 10% (from 5%) with a one-year transitional period, effective 1 January 2022. Under the transitional rule, supplies made during 2022 pursuant to a contract signed on or before 23 December 2021 are subject to VAT at a rate of 5% until the contract expires, is renewed or is amended (whichever is earliest). The tax administration released VAT guidance earlier in 2022. Read TaxNewsFlash
Read an August 2022 report [PDF 116 KB] prepared by the KPMG member firm in Bahrain
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