Bahrain VAT Filing

by
Odoo          
v 12.0 Third Party

1500.00 €

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Technical name bahrain_vat
LicenseOPL-1
Websitehttps://www.inteslar.com
Required Apps Invoicing (account)
Included Dependencies
Technical name bahrain_vat
LicenseOPL-1
Websitehttps://www.inteslar.com
Required Apps Invoicing (account)
Included Dependencies

BAHRAIN VAT return for Odoo

This Module works on both community and enterprise editions

This APP allows you to file taxes according to the NBR rules and regulations in BAHRAIN, it adds a lot of new functionalities related to filing taxes with the government in a user friendly way, the app will pass automatic journal entries, register payment with the bank and also allows adjustments.

Main Features

Complete tax filing without any manual intervention.

Exports.

Form looks exactly like NBR form.

Configure input, output taxes

Tax refund for credit / debit notes.

Work with Reverse charges for both goods and services.

import shipments with reverse charges

New Reports

Added fields on invoice and vendor bills.

Tax adjustments form

Taxes for zero rated and exempted goods





Configuration:

Configure taxes as per below:



TRN field added on customer and supplier masters:


Customer invoice:

The newly designed customer invoice includes all the fields necessary to file VAT.


Vendor bills:

The vendor bill was redesigned to be aligned with the NBR requirements:


New Menus:

Using the vat return menu item, you can file a new tax return

Clicking on the Vat return will open this new form that shows all the VAT filings that were done during various periods, it also shows the status of these filings (New, Validated, Paid, Rollover)


The new VAT file form:

Click on compute tax to get all amounts:


Click on any of the tax lines to see corresponding records:

Click on the Reverse Charge tab to see all reverse charges along with exports


Tax Adjustments:

If you need to adjust any of the taxes configured, you can use our tax adjustment form that was designed to adjust any tax (sales or purchase):

When the form is validated, journal entries are automatically posted for you under Account details tab:

After validation, you can go ahead and pay the government the net amount::

If the net amount is negative, the system will ask you if you would like to receive a refund from the government or whether you would like to roll over the credit to the next filing period. :


Filling Data on the NBR website:

Our module was designed to be user friendly and allow the user to easily file data on the tax authority website, the original NBR form 201 looks like this:

On the form click on print Bahrain VAT return:


The report will look exactly like the NBR form:


Copy and paste the amounts from our report directly to the TRA form, its that easy! Another report looks like this:

Each line item in the VAT Return Form is described in further detail below:

1

Standard rated sales: Total amount of standard rated goods and services (excluding VAT collected) sold during the current period in The Kingdom of Bahrain and VAT that was collected on their sale or adjustments to similar sales made in the previous reporting periods. Please refer to the technical FAQsfor the list of standard rated goods and services. Examples of adjustments include, return of goods and services by customers on which you have declared/paid VAT to NBR, sales made to tourists under a VAT refunds for tourist scheme and refunded to the refund operator, bad debt write-off on standard rated receivables.

2

Sales to registered VAT payers in other GCC states: Total amount of sales to GCC states and all adjustments to sales to registered customers in GCC states will be treated as exports until integrated GCC customs system goes live. Thus, for the time being this field will be display only and not editable..

3

Sales subject to domestic reverse charge mechanism: Total amount of sales and adjustments to sales (including those made in previous periods) that were standard rated but made to a domestic purchaser who has the right granted by NBR (supported by a valid certificate) to apply the domestic Reverse Charge Mechanism.

4

Zero-rated domestic sales:Total amount of all goods and services (excluding VAT collected) that were zero-rated and sold during the current period in The Kingdom of Bahrain or adjustments to similar sales made in the previous reporting periods. Please refer to Chapter 14 of the VAT Regulations (Article 67 – 80) or browse the Technical FAQs for more information on zero rated (0%) goods and services. Examples of adjustments include, returned zero-rated sales in Bahrain, bad debt write-off on zero-rated domestic receivables.

5

Exports: Total amount of standard rated, zero-rated and exempt goods and services (excluding VAT collected) sold during the current period in countries outside the Kingdom of Bahrain or adjustments to similar exported sales made in the previous reporting periods. Please refer to the Technical FAQs for standard-rated (5%) and zero-rated (0%) goods and services as well as exempt sales. Examples of adjustments include, returned exports, bad debt write-off on exports receivables.

6

Exempt Sales: Total amount of goods and services (excluding VAT collected) sold during the current period that were exempt in the Kingdom of Bahrain or adjustments to similar exempt sales made in the previous reporting periods. Please refer to Chapter 15 of the VAT Regulations (Article 81 – 85) or browse the Technical FAQs for the list of exempt goods and services. Examples of adjustments include, return of exempt goods, bad debt write-off.

7

Total Sales (automatically calculated): Aggregated amount of goods and services (excluding VAT collected) sold.

8

Standard rated domestic purchases: Total amount of goods and services (excluding VAT paid) purchased during the current period that were standard rated and bought in the Kingdom of Bahrain or adjustments to similar purchases made in the previous reporting periods. Please refer to the Technical FAQs for the list of standard rated goods and services. Examples of adjustments and apportionments include, return of standard rated domestic purchases to suppliers, portion of standard-rated domestic purchases used to make exempt sales. Note: 100% of input VAT on standard rated domestic purchases can be claimed back only when 100% of the goods and services in question are used for standard rated and zero-rated sales. No input VAT can be claimed back for the proportion of standard rated domestic purchases used to make exempt goods and services. In cases where standard rated domestic purchases are used to make exempt sales, then appropriate input VAT must be deducted from the reclaim. Also, if apportionment is used AND adjustment to purchase for previous VAT periods also exists, this field will total both of them.

9

Imports subject to VAT either paid at customs or deferred: Total amount of goods (excluding VAT paid) purchased (paid or deferred) during the current period that were standard rated and imported or adjustments/apportionments to similar goods purchased or deferred made in the previous reporting periods. Designated importers must specify their standard rated imports or adjustments / apportionments made to imports. Please refer to the Technical FAQs for the list of standard rates goods and services. VAT amount auto-calculated should be exactly the VAT amount paid at Customs. Imports for which VAT has not been paid at Customs such as services, shall be reported under reverse charge mechanism. Examples of adjustments and apportionments include, portion of imports subject to VAT (A) paid at customs or (B) deferred by grant from NBR, used to make exempt sales. Note: 100% of input VAT on imports subject to VAT either paid at customs or deferred can be claimed back only when 100% of the goods and services in question are used for standard and zero-rated sales. No input VAT can be claimed back for the proportion of imports subject to VAT either paid at customs or deferred used to make exempt goods and services. In cases where imports subject to VAT either paid at customs or deferred are used to make exempt sales, then appropriate input VAT must be deducted from the reclaim.

10

Imports subject to VAT accounted for through reverse charge mechanism: Total amount of goods from other GCC countries and services (excluding VAT paid) purchased during the current period that were standard rated and imported and reverse charged or adjustments/apportionments to similar services purchased in the previous reporting periods. Under the reverse charge mechanism, the recipient of services accounts for any VAT due as opposed to the supplier. Under the reverse charge mechanism, the recipient of mostly services must declare/pay any VAT due in replacement of the foreign supplier. This excludes imports made under a deferral grant of NBR. Examples of adjustments and apportionments include, portion of imports subject to VAT accounted for through reverse charge mechanism used to make exempt sales. Note: For the VAT amount, 100% of input VAT on reverse charged imports can be claimed back only when 100% of the goods and services in question are used for standard and zero-rated sales. No input VAT can be claimed back for the proportion of reverse charged imports used to make exempt goods and services. In cases where reverse charged imports are used to make exempt sales, then appropriate input VAT must be deducted from the reclaim.

11

bPurchases subject to domestic reverse charge mechanism: Total amount of goods and services (excluding VAT paid) purchased during the current period that were standard rated and purchased under a grant by the NBR on domestic reverse charge mechanism. Adjustments resulting from the return of purchases made under the domestic reverse charge mechanism do not have to be reported here, since VAT has not been paid at the time of purchase. Note: Taxpayers with exempt sales do not qualify for the domestic reverse charge mechanism and can therefore not make an apportionment that results in a VAT payable.

12

Purchases from non-registered suppliers, zero-rated/exempt purchases: Total amount of goods and services (excluding VAT paid) purchased during the current period that were either zero-rated and purchased in The Kingdom of Bahrain, or zero-rated and imported from a country outside of The Kingdom of Bahrain, or purchased from a non-registered supplier or were exempt and either bought in The Kingdom of Bahrain or imported from a country outside of The Kingdom of Bahrain. Or adjustments (excluding VAT paid) made to similar goods and services purchased during previous reporting periods. Please refer to the Technical FAQs for a list of zero rated and exempt goods and services. Examples of adjustments include, return of purchases to non-registered suppliers, return of exempt purchases to suppliers.

13

Total purchases (automatically calculated): Aggregated amount of goods and services (excluding VAT paid) purchased.

14

Total VAT due for current period (automatically calculated): Total VAT calculated from aggregated VAT collected on sales and recoverable VAT paid on purchases.

15

Corrections from previous period (between ±5000BHD): If corrections to the previous return due to a mistake originating from the taxpayer, not triggered by a sale/purchase adjustment, entail a VAT liability correction between BHD 5,000 and BHD 5,000, specify the VAT correction (and not sales or purchases amount) in this field. For any other VAT corrections, the taxpayer has to submit a Self-Amendment form.

16

VAT credit carried forward from previous period(s) (automatically calculated): Total amount of credit in your VAT account from previous returns that has not been used to offset any outstanding liabilities or not been refunded. This amount will be used to offset the VAT liability (if any) for this return.

17

Net VAT due (or reclaimed) (automatically calculated): The total amount of VAT liability or credit for the current return. Any negative amount is VAT credit that can either be refunded or carried forward to offset VAT liability for the subsequent periods.

Click on the Export report button to get the excel sheet format:


To get taxes balance:


Click on any record to drill down to the journal entries level:


Pivot table view:


Imports of goods:

The entry of goods into Bahrain from a place outside the Implementing States territory triggers a VAT event (i.e., an import of goods). The VAT treatment of imports of goods is summarized below.:


What is an import of goods?:

An import of goods is the entry of goods in the territory of the Implementing States from a place outside that territory, where the goods are cleared through customs (i.e., not placed under a customs duty suspension regime1 ). Until Bahrain recognizes one or more GCC Member States as Implementing States, all goods entering into Bahrain that are cleared through customs will be regarded as imports of goods for VAT purposes. The mere fact that goods enter Bahrain and are customs cleared is enough for an import of goods to have taken place for VAT purposes. Furthermore, an import of goods does not require an actual supply (e.g., sale) between two separate parties or for consideration to be paid.:


Payment of the VAT due on an import of goods:

General rule VAT due on imports of goods is payable by the importer of record to Bahrain Customs Affairs at the point of import, before they are released for general circulation. Bahrain Customs Affairs will collect the VAT using the same procedures for payment of customs duties and Excise Tax.:


Recovery of the VAT paid on import of goods:

A taxable person registered for VAT in Bahrain can claim the VAT paid on his imports of goods provided the conditions for input tax recovery as set out in the VAT Law and the Executive Regulations are all met (i.e., the taxable person will use the goods for the making of taxable supplies and the recovery of VAT on these goods is not disallowed). The use of an erroneous VAT number will preclude the taxable person from claiming import VAT back from the NBR. It is essential that the taxable person keeps records of the customs documentation issued by Bahrain Customs Affairs which proves that he imported the goods into Bahrain and paid the VAT due on them (or deferred the payment to his tax return). These are the documents which will allow the taxable person to support the recovery of the VAT and claim this VAT back in his tax return. In practice, import VAT can be recovered as input tax in the taxable persons tax return for the tax period during which all the conditions for input tax recovery are met. It is expected to be the tax return for the tax period during which the import of the goods took place and import VAT was paid to the Bahrain Customs Affairs. Where the payment of import tax has been deferred to the taxable persons tax return, the taxable person will be able to also report this VAT as a recoverable input tax within the same tax return (provided all the conditions for recovery are met at that time, including the customs documentation supporting the deferral of payment). :


Example:

If you imported goods from outside Bahrain, open a new vendor bill and fill in the details as follows:

The import tick box must be ticked, do not select any taxes from the drop down list:

You can go head and validate the bill:


Enabling import would show a new click button Bill of Entry, fill out the details lie below:

Click Compute reverse charge:

Click the post journam entries:

Click register payment to pay both customs and vat on this import:

Payment Entry:

Here is your bill of entry on the vendor bill:

Exports:

Exports of goods, when taking place in Bahrain, are subject to Bahrain VAT at the rate of 0%. The zero-rate allows Bahrain businesses selling goods at export to remain competitive:

Selling prices are not impacted by VAT (i.e., VAT is charged but at a rate of 0%);

Businesses are able to recover VAT charged on expenses incurred relating to the goods exported

To export goods, create a new customer invoice and tick the exports check box:

Domestic Reverse charges:

Domestic reverse charges on the sales invoice:

Domestic reverse charges on the vendor bill:

Domestic reverse charges on the filing form:

Domestic reverse charges on the NBR form:

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