Tax Invoices in Bahrain | What are the Information to be included in a Detailed Tax Invoice in Bahrain?
Preparing a proper tax Invoice is very important for compliance of Bahrain VAT Law. In this blog, we are summarizing, the important contents required in a Tax Invoice under Bahrain VAT Law, Tax Invoice Format etc.
What is a Tax Invoice?
Tax Invoice is an invoice issued for taxable supply for goods & services. Tax Invoice is the primary evidence for a recipient to claim the input tax credit.
What are the Different Types of Tax Invoices in Bahrain?
According to the National Bureau of Taxation, there will be two kinds of invoices for VAT in Bahrain. Those are Simplified Tax Invoice, Bank Statements.
What is the Information to be included in a Detailed Tax Invoice? A detailed Tax Invoice should include all the following information:
However, Tax invoices can be issued either in Arabic or English. However, in the Kingdom of Saudi Arabia (KSA) the Tax Invoice shall be issued only in Arabic. A supplier should issue a Tax Invoice by the 15th day from the end of the month in which the supply took place. Where the invoices are issued other than in Dinar, the Taxable person should also mention the exchange rate and should mention the Dinar value as well. Where a Taxable Person issues a copy or several copies of the original Tax Invoice. The statement “Duplicate of Original” must be displayed on every copy.
And input tax thereon can be claimed only using the original Tax Invoice. And if the original tax invoice is lost/ damaged, the Supplier may issue a duplicate invoice with a statement mentioning that it has been issued to replace the original Tax Invoice. If a supplier who makes several Supplies for a single Customer during a period of one month may issue a summarized Tax Invoice which will be treated as a Tax Invoice, which should follow all the conditions for a Tax Invoice stipulated in the Law and the Regulations.
What is the Information to be Included in a Simplified Tax Invoice?
The Simplified Tax Invoice should include all the following information:
However, the Simplified Tax invoices can be issued only in the case when the customer is unregistered in the Kingdom of Bahrain or the Supply is less than the BHD 500.
Whether there is a Provision in Bahrain VAT Law to Issue Tax Invoice on Behalf of Supplier?
Yes. A taxable customer from a taxable supplier has the right to issue a Tax invoice on behalf of the supplier if the following conditions are satisfied.
Bank Statements As per Clause I of Article 52 of the Executive Regulation of the VAT Law, a Bank statement shall be treated as a Tax Invoice if it contains the following information:
This has been a welcoming addition to the Bahrain law as it will enable registrants to claim Input tax based on the Bank statements issued by banks unlike in UAE, where Input tax recovery is possible only by obtaining a proper tax invoice which affected the input claims of registrants.
What is the Penalty for Non-Compliance Related to Issue of Tax Invoice?
If any person who has done with the non-compliance related to issuing of a Tax invoice there will be an administrative penalty of BHD 5,000. Emirates Chartered Accountants Group offers TAX Services in Bahrain to the clients by giving them proper guidance and assisting them to comply with the new TAX provisions in Bahrain. For VAT Registration, VAT Advisory, VAT Implementation, VAT Return Filing Services in the Bahrain please contact our below representative
For VAT Services in Bahrain
Mobile: +973 – 3619 8998
+971 – 50 629 0615