After the third and final stage of the value-added tax (VAT) registration in Bahrain has lapsed in 2019, businesses will now be required to regularly file their VAT returns this 2020 and onwards. Several businesses have registered for VAT over the last year and close to 25,000 businesses will need to register for VAT with effect from January 1, 2020.
As per the annual supplies, businesses can file their VAT returns either monthly, quarterly or annually. Tally Solutions, a leading business management software provider explains that taxable entrepreneurs with annual supplies not exceeding BHD 3 million will have quarterly tax periods, while those with annual supplies exceeding BHD 3 million will have a monthly tax period. An entrepreneur with annual supplies not exceeding BHD 3 million has the option of requesting the National Bureau for Revenue (NBR) to have monthly tax periods. If the NBR accepts the request, it will notify the concerned business about the change in the tax period. NBR is also coming up with annual return instead of monthly return for the businesses whose annual supplies are less than 100,000 BHD, the company added.
Vikas Panchal, Business head- Middle East, Tally Solutions said: “New developments will arise as business organisations navigate through the new VAT era. Businesses will have to make significant changes in their processes to comply with the law. Given the intricacies of the different provisions of the VAT law, we recommend that businesses, especially small and medium enterprises (SMEs), automate their accounting and taxation systems to guarantee that they operate correctly and efficiently under the VAT regime. Exploring the best VAT-compliant software will help them transition into the new regime with ease.”
Tally Solutions has been ramping up its efforts to assist SMEs in this transition and help ensure that businesses properly conform to the new rules and regulations. The company has conducted several events over the last one year in association with renowned Chartered Accountants to spread awareness about VAT amongst SMEs. Till date the company has conducted over 100 events across Bahrain and 500 events across GCC to acquaint the business owners on VAT and its implementations.
Tally Solutions is a leading business management software provider that helps small and medium businesses manage accounting, inventory and achieve tax compliance in a timely and effective manner. It has helped over 2,000 businesses in Bahrain be tax compliant and improve their business efficiency.