1st January 2019 onwards, every organization registered under VAT in Bahrain ought to comply with the VAT requirements. Among the immediate requirements for VAT signed up service in Bahrain is to provide a VAT invoice. VAT Billing in Bahrain just describes a written or electronic file which the taxable person needs to issue, and it should include the information of supply and all other information in accordance with the arrangements of law.
On every taxable supply of goods or services, the VAT signed up provider must release a VAT billing with 5% VAT. The Law and regulation prescribe the requirements of VAT Billing in Bahrain
In this post, let us have a look at the vat Invoice in Bahrain.
Type of VAT Invoices in Bahrain.
The VAT billing in Bahrain is classified into the list below types:
1. Tax invoice
2. Streamlined Billing
1. Tax invoice
A Tax invoice should be issued by the signed up service on the supply of products or services to a VAT registered recipient.
2. Simplified Invoice
A streamlined tax invoice is a type of VAT invoice in which a VAT signed up a supplier can issue in the following cases.
The recipient of the supply is not signed up for VAT in Bahrain
The total consideration of the supply does not go beyond the BHD 500.
Last Date to Issue a Tax invoice
The VAT registered provider should release a Tax within 15 days from the end of the month in which the supply happened.
For example, you have actually supplied products on 25th January. The last date to issue a tax billing would be 15 days from the completion of January i.e. 15th February.
Currency in which the Tax Invoice must be issued
The currency to be utilized in a Tax Billing is Bahraini Dinar (BHD). If the supply is in a currency other than UAE Dirham, the amount displayed in the invoice should be transformed to BHD according to the currency exchange rate approved by the Central Bank as on the date of supply.
Settling in VAT Billing
The Bahrain VAT regulations permit rounding of a fraction of fils. In an invoice, if VAT computations result in a portion of a fils, the provider can round off the amount to the nearby fils. If the portion is less than 0.5, it is rounded down to the nearby fils and if the fraction is 0.5 or more, it is rounded up to the closest fils.
Duration of Keeping a Tax Billing
The tax invoice should be maintained by the taxpayer for a duration of 5 years from completion of the tax period to which it belongs.