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How VAT Consultants in Bahrain Can Help You With VAT Implementation in Your Business

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The implementation and administration of VAT consultants in Bahrain is taken up by the government authority of the National Bureau for Revenue (NBR), who is the sole responsibility in the administration, monitoring of rules and regulations, and collection of taxes and fines in cases of VAT non-compliance. Since the introduction of Value Added Tax (VAT) in the GCC states, the Kingdom of Bahrain has been the third country after the Kingdom of Saudi Arabia and the United Arab Emirates to have implemented VAT from 2019. While for some services and goods the VAT has been levied at the minimum rate, for certain goods and services Zero Rates and exemptions are also available.

Why Focus on Implementation of VAT in Bahrain?

VAT rules and regulations require a lot of transition and changes, especially when it comes to compliance in already established companies. By using VAT consultants in Bahrain services or VAT advisors, businesses can make sure that they are strictly adhering to the Bahrain VAT law. With the coming of stricter VAT compliance laws in the Kingdom of Bahrain, it becomes even more imperative to be well-versed in all the perquisites needed by different institutions.

The implementation of VAT can be simplified in a few easy steps.

The first step is to ‘Register the VAT’ through the NBR portal’s e-process. Once the VAT Registration process is completed, there will be a special Tax Registration Number allocated. The company or individual can discuss with their VAT advisors whether they should go for Stand Alone or a Group Registration.

The second process is to understand the type of business being run and its transaction process. VAT consultants can give an initial synopsis and basic understanding and training to the management and the employees on VAT or the job of finance and accounting can be outsourced to the accounting companies in Bahrain. The decision needs to be taken with the effectiveness of the accounting and bookkeeping services in mind. The advisors handling the accounting need to be well-versed with the organisation structure and operation processes of the business. Once the changes are made, they need to be intimated and implemented in the IT, the Finance, and all other relevant departments of the company.

When the VAT is implemented, the next step is to analyse the impact of VAT on the business and its financials. If any issue comes to light during the analysis, it can be rectified and simultaneously nullified for the future. VAT consultants can also help with highlighting any potential issues they think might come up related to taxes and non-compliance and keep the businesses on track. Once all issues are taken care of as per the Bahrain VAT Regulations, VAT Returns can be filed by the firms.

VAT Returns are also filed through an online process on a monthly or quarterly basis as prescribed by the NBR. While preparing for the VAT Return filing, it is very important to make sure that all ledgers and registers are properly reconciled, the Tax Invoices, both issued and received, as well as the Tax Credit Notes are carefully reviewed.

VAT Taxation can get peculiar if it is an unfamiliar field, but with the correct accounting outsourcing services, you can be assured of your finances.