Early Preparation and meeting deadlines key for successful filing of their VAT return forms
Manama, Bahrain, 14th May 2019: Following Bahrain’s implementation of value-added tax (VAT) system at the start of 2019, Tally Solutions, a leading international accounting and compliance software provider, has reiterated to businesses to prepare early and be mindful of deadlines for successful filing of their VAT return forms.
The VAT return form, commonly referred to as VAT return filing, is an electronic form that contains the details of transactions related to taxable sales and purchases for a given tax period. Under Bahrain’s VAT law, all the details need to be filed electronically by logging to the National Bureau for Revenue (NBR).
“Although still at its early stages, a number of businesses have fully embraced the new VAT regime. We noticed that many of them had made preparations to become VAT-ready even before the system was officially rolled out by the government on January 1, 2019. However, several are still in the process of making critical adjustments in their procedures for proper compliance with the new law. It is, thus, important to know and understand the steps in VAT return filing to ensure that businesses correctly follow the provisions of the taxation law,” said Vikas Panchal, Business Head at Tally Solutions in the Middle East.
According to Tally Solutions, the first step to file returns in Bahrain is to register with NBR electronically where the form can be accessed.
After the registration, businesses need to provide information with regard to ‘VAT on Sales’ and ‘VAT on Purchases’ in the VAT return form. VAT return filing requires the details at a summary level, that is the consolidated details of sales, purchase/expenses, output VAT, and input VAT. These details need to be furnished in the format prescribed by NBR.
The next step after furnishing the required details is to submit the VAT return form. NBR will then send a notification of acknowledgement via e-mail and SMS to the taxpayer. The official detailed receipt can be accessed on the taxpayer’s portal account with the NBR.
“Investing in the right tax accounting software will enable businesses to account their VAT transactions as well as triangulate their business records to generate accurate VAT return in the prescribed format. Manual collation of the required information and manual compilation of transactions are not only a tedious task but these can also lead to missed deadlines and human errors, which translate to non-compliance and, consequently, can attract hefty penalties. VAT software will help businesses be VAT compliant and assist them in their seamless transition to the new VAT era,” added Mr. Panchal.
Over the past one year, Tally has been helping more than 50,000 businesses comply with VAT regulations in the UAE and Saudi Arabia. Tally’s tax accounting software is accredited by FTA in UAE and GAZT in Saudi Arabia through a vigilant verification of requirements that ensures the software is guaranteed to simplify the VAT compliance for businesses. The company is an accounting solutions provider that helps clients achieve tax compliance and manage records in a timely and effective manner. Trusted by nearly 2 million businesses globally, Tally Solutions includes a list of satisfied clients across GCC.