VAT Return Filing in Bahrain 2018

You have heard that Bahrain is going to introduce VAT from January 2019, right? Actually, they have introduced it at a rate of 3-5% from the mid of 2018 itself and became the third GCC member state to introduce VAT. The minister of finance in Bahrain has appointed a tax authority to administer VAT. As a result of this, all companies have to register for Value-added tax and the authorities will take actions against the companies which have failed to do this.

Depending on local VAT regulations, VAT will vary for each GCC member state according to the place of supply. The majority of people have a lot of doubts about this like -

• When will be the VAT due
• Do we want to keep VAT invoice
• How can we do VAT return filing
• What is the threshold to register for VAT

VAT should be given before the supply of goods or services. We have to keep VAT invoices for at least 5 years from the year it was issued. But in the case of real estate properties, it should be kept for 15 years. The minimum VAT period is 1 month. Do you have a doubt that is there a threshold to register value-added tax? Yes, there is a threshold of BD 37,700.

What is VAT Return?

A VAT return is a formal record statement of paid VAT for goods and services during a specific period. It can be paid on a quarterly basis and monthly basis. If you paid the VAT tax, then you can file the VAT return. VAT return is a proof of tax payment. Now you might be thinking of how to file this. Am I right? If so, continue reading this.

How to File VAT Return?

VAT return filing in Bahrain is easy. There will be e-filing portal provided by the tax authorities. You can easily file VAT returns through this portal. Keep in mind that you can't file this in an offline mode. Don't feel that it is a hectic task because VAT return filing is very important. Through this filing only, you can inform the system about the VAT tax that you have paid. Actually, this filing method is a digitized way to store the details of taxes that you paid.

Hope now you might be aware of the importance of VAT and VAT return filing. Since all companies have to follow these rules, it will be better to try some VAT enabled ERP software like iCresp to manage your business efficiently. This software will be useful to reduce tax issues, accounting issues, penalties for VAT tax, manual data entry issues and so on.

VAT Enabled ERP Software Solutions in Bahrain

Nowadays, the word, VAT is common among us but actually, what is it? I think a majority of us don't have a clear picture about it. We have heard that VAT is going to be implemented in GCC including Bahrain, UAE, Saudi, Qatar, Kuwait, and Oman. It is a true fact that this new tax calculation will affect the companies in these regions.

What is VAT or value-added tax? VAT is a consumption tax which is placed on a product. i.e. it is the tax that we pay on goods and services. Since this tax rate is based on the location of the consumer, it is implemented as a destination based tax. Usually, the VAT rate is decided by the state by calculating the percentage of end market price. It is considered at each stage of the supply chain.VAT can be calculated by two methods either by invoice based method or by accounts based method. More than 160 countries use this taxation because it has many advantages.

What are the advantages of VAT?

• Provide a stable revenue base
• It can be imposed on all types of businesses
• Provide strong incentives for business
• Reduce obstacles to exports
• Useful to maintain a balanced tax system

VAT Enabled ERP Software

Actually, most of the ERP software systems are equipped with some kind of VAT. VAT Enabled ERP Software in Bahrain verify VAT treatment of business's transactions mechanically or manual method. iCresp is one of the leading VAT enabled ERP software solutions in Bahrain. This software will be useful for companies to carry out VAT related activities efficiently. This software will be useful to kept business accounting up to date.

Companies which don't have a VAT-enabled ERP software will have to face the following problems -

• Tax issues
• Accounting issues
• Cash flow forecasting issues
• Penalties for VAT taxation
• Manual data entry burdens
• Internal and external pressures
• Tax compliance
• Tax audit assistance

iCresp which is the best VAT enabled software Bahrain is user-friendly, budget-friendly, robust and can be customized to meet your financial demands. It will manage your business taxation and thus you can overcome the above-mentioned issues. By referring to the following site, you can know more features of this software system - http://www.icresp.com