The National Bureau for Revenue (NBR) conducted 495 inspection visits within the local markets of the governorates during January and February.
The campaigns resulted in reporting violations that required the imposition of administrative fines in accordance with the VAT & Excise Law, in addition to monitoring several suspicions of VAT and excise evasion that may require the precautionary closing of several businesses.
The NBR will take legal action against the violating businesses, and refer those who are proven to have committed one of the evasion crimes to the competent authorities to initiate a criminal case against them.
The accuser may face imprisonment for five years and a fine equivalent to three times the amount of VAT due according to the VAT law, or by imprisonment for one year and a fine equivalent to double the evaded excise according to the Excise law.
These campaigns were organized as a part of NBR’s ongoing oversight efforts to protect consumer rights and enhance the level of business compliance and ensure the effective implementation of VAT and excise.
The VAT and excise implementation included the Digital Stamps Scheme on cigarette products to guarantee that businesses are aware of the Scheme and the mandatory presence of digital stamps on all cigarette products available in the local markets, in addition to spreading the necessary awareness of the procedures to be pursued.
These efforts come as part of the regular inspection and control procedures using cutting-edge tools adopted by the NBR during inspections.
The inspection tools contribute to address tax evasion, prevent the possession, trade, sale, or supply of products that have not fulfilled their VAT or excise obligations, which includes the Digital Stamps Scheme on cigarette products in the local markets entered into force on October 16 2022.
The NBR confirmed the continuation of inspection campaigns aiming to urge all businesses registered with the NBR to adhere to the application of legislation to prevent violations and ensure the success of the various stages of implementation.
Source: Bahrain News Agency