VAT charging allegations against retailer ‘baseless’

A rumour that a leading supermarket started charging VAT earlier this week was found to be baseless. The rumour that was spread on social media was circulated along with an image claiming that the store, Al Anwar Discount Centre started charging VAT on 29th last month. The image that was circulated was a photograph of a receipt, which showed VAT being charged on a transaction. The claims were found to be untrue and no VAT was charged on consumers, Tribune has learned. The Ministry of Industry, Commerce and Tourism confirmed that it has learned about the rumour.

The ministry stated that upon investigation it was found that the circulated picture was the result of an internal trial. “The sales receipt which showed VAT being charged was found to be a part of a trial. The store had not implemented VAT at the time. If there are any comments or complaints, please call 80008001,” the ministry stated. Al Anwar Discount Centre also clarified that the store did not charge VAT on consumers. “We would like to clarify to our customers that the receipt was printed during an internal trial to ensure that the business is ready to apply the Value-added Tax starting from January 1, 2019.”

The past few days saw brisk businesses in car showrooms, jewellery shops, furniture stores and other stores as the implementation of VAT loomed. The Kingdom will implement VAT after the legislation was passed last year. Jewellery showrooms, in particular, witnessed a huge rush yesterday with customers buying large quantities of gold ornaments in the past few days. Many jewellers said the businesses surpassed all expectations.

“We had a good business during the past week,” a jeweller told Tribune. He said that almost all jewellers of Manama, have been stocking latest ornament designs expecting a pre-VAT rush. The Bahrain Chamber of Commerce and Industry has assured that it will offer strong support to businesses through organising workshops and initiatives. Last week BCCI had organised a series of VAT workshops to educate businesses about VAT. The BCCI will continue to hold initiatives to help businesses cope with the stress of VAT implementation, assured BCCI board member Sonia Janahi.