The National Bureau for Revenue (NBR) in Bahrain has recently conducted 296 inspections in local markets across various governorates in April and May 2023. The purpose of these inspections is to regulate and monitor markets, ensuring consumer protection and combating VAT and excise duty evasion. The NBR’s effective market surveillance has uncovered 69 violations of VAT and excise duty regulations, resulting in administrative fines.
Some of the violations discovered included non-compliance with VAT invoice issuance requirements, displaying prices exclusive of VAT, and failing to display VAT certificates in a visible location. In addition, violations related to the digital stamp system were detected, involving the circulation of excisable goods without valid and activated digital stamps. The NBR is taking legal action against suspected cases of VAT or excise duty evasion, referring perpetrators to the relevant authorities for criminal prosecution.
According to the NBR, penalties for such offenses can include imprisonment for up to five years and a fine equivalent to three times the evaded VAT, as per the VAT Law. Offenders can also face imprisonment for up to one year and a fine equivalent to twice the evaded excise duty, as per the Excise Duty Law. The success of these inspection campaigns relies heavily on the cooperation of businesses and consumers to achieve the highest standards of compliance.
The NBR is urging all stakeholders to report any violations or non-compliance with VAT or excise duty regulations by contacting a specialist at the NBR’s 24/7 call center at 80008001 or through the National System for Proposals and Complaints (Tawasul). Inquiries or observations can also be sent via email to vat@nbr.gov.bh for VAT-related matters and ds@nbr.gov.bh for digital stamp system concerns. By promoting transparency and accountability in the market, the NBR aims to ensure a fair and regulated business environment for all.
The NBR’s recent inspection campaign in local markets in Bahrain aims to regulate and monitor markets, ensuring consumer protection and combatting VAT and excise duty evasion. The bureau conducted a total of 296 inspections across various governorates during April and May 2023, uncovering 69 violations of VAT and excise duty regulations. These violations included non-compliance with VAT invoice issuance requirements, displaying prices exclusive of VAT, and circulating excisable goods without valid digital stamps.
The NBR is taking legal action against suspected cases of VAT or excise duty evasion, with penalties that can include imprisonment and fines as per the VAT and Excise Duty Laws. The success of these inspection campaigns relies on the cooperation of businesses and consumers to achieve the highest standards of compliance. The bureau is urging all stakeholders to report any violations or non-compliance with VAT or excise duty regulations through their call center or email for prompt action. By promoting transparency and accountability in the market, the NBR aims to create a fair and regulated business environment in Bahrain.
In conclusion, the NBR’s efforts to regulate and monitor local markets in Bahrain through inspection campaigns are essential for consumer protection and combatting VAT and excise duty evasion. With 296 inspections conducted and 69 violations uncovered, the bureau is taking legal action to ensure compliance with VAT and excise duty regulations. By encouraging cooperation from businesses and consumers and providing channels for reporting violations, the NBR is working towards creating a fair and transparent marketplace. Stakeholders are urged to report any violations or non-compliance to the NBR for immediate action, promoting a regulated business environment in Bahrain.
