PENALTIES & FINES IMPOSED UNDER BAHRAIN VAT LAW

Synopsis of fines & penalties in Tabular Form:-

Sr. Non Compliance Defaults Penalty In Penalty in Penalty in

No. BHD AED INR

Not Not Not

Failure to register within 60 days of
1 Non Registration Exceeding Exceeding Exceeding
requirement
10,000/- 100,000/- 20,00,000/-

5% - 25% 5% - 25% 5% - 25% of

Unpaid Tax & If a Taxable Person fails to pay Tax or
of the Tax of the Tax the Tax
2 Non Filing of Tax Submit Tax Return within time frame up
supposed to supposed to supposed to
Return to a maximum of 60days.
be paid. be paid. be paid.

2.5% - 5% 2.5% - 5% 2.5% - 5%

If false data in return leads to per month per month per month
3 False Data
underpayment of taxes. of the under of the under of the under
tax paid. tax paid. tax paid.

Not Not Not

In case of Failure to cooperate with tax
4 Non Cooperation Exceeding Exceeding Exceeding
authorities or preventing the same.
5,000/- 50,000/- 10,00,000/-

Failure to provide the correct

Incorrect Not Not Not
information or documents to the
5 Information or Exceeding Exceeding Exceeding
authorities or notify the authority of any
Documentation 5,000/- 50,000/- 10,00,000/-
changes in the information

Not Not Not

Display of Prices Failure to display the prices inclusive of
6 Exceeding Exceeding Exceeding
exclusive of Taxes taxes on the products.
5,000/- 50,000/- 10,00,000/-

Not Not Not

Failure to issue Failure to comply with the conditions
7 Exceeding Exceeding Exceeding
tax invoice and procedures related to tax invoice
5,000/- 50,000/- 10,00,000/-
 

Synopsis of act attracting Imprisonment along with fines & penalties in Tabular Form:-

Sr. No. Non Compliance Imprisonment Tenure Penalty In BHD Penalty in AED Penalty in INR

3times of the tax 3times of the tax 3times of the tax

1 Tax Evasions 3yrs – 5yrs
evasion amount. evasion amount. evasion amount.

Repetitive Tax Evasion with 3times of the tax 3times of the tax 3times of the tax
2 3yrs – 5yrs
3yrs evasion amount. evasion amount. evasion amount.

Conversion Rate :-

BHD to AED – 1BHD = 10AED (Approx)

BHD to INR – 1BHD = 200INR (Approx)

AED to INR – 1AED = 10INR (Approx)