Bahrain officially implements 10% VAT
The increase comes two years after Bahrain started implementing a 5 percent VAT on taxable goods in a bid to curb the budget deficit and re-stabilize the Fiscal Balance Programme impacted by COVID-19. Supplies that are subject to the zero-rate including basic food, construction of new buildings, oil and gas, healthcare, and education or exempt from VAT such as real estate and certain financial services will be unaffected.
VAT violations
The Ministry of Industry, Commerce and Tourism closed yesterday 12 stores for not conforming with VAT requirements after visiting 161 shops in Arad District, Seef Mall Manama, Avenues Mall, Ramli Mall, Seef Mall Isa Town, City Center Mall.
The inspection visits were in coordination with the National Bureau for Revenue. Judicial Control officers announced detecting 73 VAT violations and slapped fines up to BD10,000. The Bureau said it is in the process of taking legal measures to refer the violating facilities, punishments of which may reach up to 5 years of imprisonment and fines equivalent to three times the evaded VAT.
Source Credit: Gulf News
