Bahrain's National Bureau for Revenue Cracks Down on Tax Evasion with 296 Market Inspections

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

The National Bureau for Revenue (NBR) in Bahrain announced in a statement conducting 296 inspections across local markets in various governorates during April and May 2023. This initiative aims to regulate and monitor markets, ensuring the highest level of consumer protection and combating value-added tax (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.

These violations included non-compliance with VAT invoice issuance requirements, displaying prices exclusive of VAT, and failing to display VAT certificates in a visible location.

Additionally, violations related to the digital stamp system were detected, involving the circulation of excisable goods without valid and activated digital stamps.

The NBR said in a statement that it's taking legal action against suspected cases of VAT or excise duty evasion, referring perpetrators to the relevant authorities for criminal prosecution.

"Penalties for such offenses can include imprisonment for up to five years and a fine equivalent to three times the evaded VAT, according to the VAT Law.

Additionally, offenders face imprisonment for up to one year and a fine equivalent to twice the evaded excise duty, as per the Excise Duty Law," the statement underlined.

The NBR's statement emphasised that the success of these inspection campaigns relies heavily on the cooperation of both businesses and consumers to achieve the highest standards of compliance.

The bureau urged 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).

Additionally, inquiries or observations can be sent via email to vat@nbr.gov.bh for VAT-related matters and ds@nbr.gov.bh for digital stamp system concerns.