05-Jul-2023 Recent Awareness issued by NBR on Estimated Assessment of VAT Return

OVERVIEW:-

Article 36 of the Bahrain VAT Law states that Taxable Person is obliged to submit a Tax return within the timeline specified in the law If a taxable person fails to submit their tax returns within the designated timeframe, the tax authority is empowered to estimate the tax for that period. 

Article 36 of Bahrain VAT law as below.

Submitting the Tax Return

The Taxable Person shall submit the Tax Return to The Authority no later than the last day of the month following the reporting Tax Period declaring all supplies made and received during that Tax Period. 

The Taxable Person is obliged to submit a Tax return even if he has not performed any purchase, import or supply transactions during the Tax period. 

If the Taxable person has not submitted his Tax return within the period specified in the first paragraph of this Article, The Authority shall have the right to estimate the tax for the Tax Period for which the Tax return has not been submitted, provided that The Authority shall determine the basis without prejudice. The criminal liability of the Taxable Persons and the administrative fines are specified in this law. 

Subject to the provisions of Article 61 of the Agreement, the Regulations shall specify the data to be reported in the tax return, its terms and conditions, and its procedures.

As mentioned in Article 36 of Bahrain VAT Law, the NBR has the right to issue an Estimated Assessment of VAT Return if the VAT return has not been received by the NBR within the specified filing period.  

If a taxpayer does not agree with the tax estimated by the authority, what can they do?  To address the aforementioned issue, the National Bureau of Revenue (NBR) has introduced a new awareness of the estimated assessment of VAT returns.

As part of its latest initiative, the NBR has introduced a self-amending VAT return process through its online portal. This allows taxpayers to rectify any disagreements they may have with the estimated assessment by following a simple set of steps.

In this blog post, APMH will explore how this new feature empowers taxpayers to reflect their actual results accurately and settle any outstanding VAT dues promptly.

Step 1: Login to NBR's Online Portal

To begin the process, access the NBR's online portal using your valid user ID and password. (URL:https://eservices.nbr.gov.bh/sap/bc/ui5_ui5/sap/z_mcf_fmca/index.html#/Logon)

Step 2: Click on the VAT Return Tile

Once logged in, locate and click on the VAT return tile on the portal. This will direct you to the section specifically dedicated to VAT return-related activities.

Step 3: Select the "Billed" Option

Within the VAT return section, select the "Billed" option from the drop-down menu for VAT return status. This option helps filter and display the relevant returns that require amendment.

Step 4: Choose the Desired Filing Period and Version

Next, choose the desired filing period from the available options. Then, select the "Current version" option from the return version window to proceed with the amendment process for the selected period.

Step 5: Click on "Amend"

After selecting the appropriate return version, click on the "Amend" button located at the bottom right of the page on the portal. Click on this button to initiate the self-amendment process.

Step 6: Confirm the Amendment

Upon clicking "Amend," a confirmation prompt will appear. Choose to proceed with the amendment by selecting the relevant option provided.

Step 7: Add Mandatory Additional Information

Once the amendment process is confirmed, you will be prompted to provide additional mandatory information. Fill in the required details accurately, ensuring that all necessary fields are completed.

Step 8: Confirmation Receipt of Self-Amendment

After successfully submitting the self-amendment, you will receive a confirmation receipt. This receipt serves as proof of the submission and indicates that the self-amendment process for the VAT return has been completed.

Conclusion 

The recent awareness issued by the National Bureau of Revenue (NBR) regarding the estimated assessment of VAT returns is a significant step towards promoting transparency and taxpayer empowerment. With the introduction of the self-amendment feature on their online portal, the NBR has provided taxpayers with a convenient and efficient method to rectify any disagreements with the estimated assessment. By following the step-by-step guide outlined in this blog post, taxpayers can easily navigate the process and ensure that their VAT returns reflect accurate financial information. This initiative not only enhances accuracy but also encourages timely compliance with tax obligations. We encourage all taxpayers to stay informed about these developments and take advantage of the self-amendment option when necessary to ensure a smooth and compliant tax filing process. 

APMH can help you to comply with return filing compliance to be done to avoid any future penalty or action from the tax authorities. Please contact us for further clarification in this matter. You can reach us on our email ID pratik@apmh.in or keta@apmh.in our contact number at Bahrain is + 973 66765313  OR +973 33875768. You can visit our website www.apmhconsulting.com   

Please refer to the image below for a visual representation of the steps explained above.