All the businesses registered under Bahrain VAT are responsible to collect VAT at 5% on the supply of taxable goods or services. Additionally, The supplier should pay the VAT collected from the customers to the Nation Bureau for Taxation (NBT). In this article, particularly, we will discuss the VAT Payment Due date and Method to calculate the VAT payment.
VAT payment in Bahrain VAT should be accompanied by the VAT return. A taxable person should submit a tax return using the NBR’s online portal and make the payment of the VAT due by the last day of the month following the end of the tax period.
For example, for the tax period Jan-Mar 2019, VAT return along with payment of VAT should be made by 30th April 2019.
Also, the taxable persons should ensure that they should make payments at the proper time. So that the NBR can receive it the same day. If there are no transactions to be reported in a given tax period, a taxable person should still submit a nil return showing no output or input tax and subsequently no VAT payment.
While the VAT registered businesses are required to pay the VAT, it doesn’t imply that one has to pay the entire amount of VAT collected on sales. The law has prescribed the method to arrive at or determine the VAT payable to the government.
The following is the formula to arrive at the VAT payment to the government.
VAT Payment = Output VAT – (minus) Input VAT
All you need to do here is to calculate your total Output VAT collected during the tax period and total Input VAT which you are eligible to recover. Once you have determined the Output VAT and Input VAT, apply the above formula.
If your output VAT is more than the input VAT, the difference will be the VAT payable. If the output VAT is less than the Input VAT, it will result in refundable and therefore, no VAT payable.
The Output VAT and Input VAT of Rose General Stores is
The VAT payment of Rose General Stores is determined by adjusting the Output VAT with Input VAT as follows:
Output VAT BHD 300,000 – (Minus) Input VAT BHD 200,000 = BHD 100,000 is VAT payable which is payable to the government.