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VAT Penalties


VAT Penalties

The NBR has approved a list of administrative penalties that will be imposed on taxpayers for infringement of the VAT laws.

Administrative penalties

Here are the administrative penalties that may be imposed on non-compliant taxpayers for the following violations:

Taxpayers involved in the following violations will be fined up to BHD 5000:

Appealing an administrative penalty

A taxpayer can appeal an administrative penalty imposed on them within 30 days from the date of notification. To do this, they must file an objection with the Tax Appeal Review Committee. The Committee will then submit a recommendation letter to the Minister or his authorised delegate within 30 days of filing the objection. The Minister or his authorised delegate are given a period of 15 days to provide a decision on the matter.

Tax evasion

The following offences are considered tax evasion by the NBR:

Penalties for tax evasion

Taxpayers who commit tax evasion will be penalised in the following ways:

Reconciliation

Tax evasion is considered an act of dishonesty. However, upon the violator’s request, the NBR may accept reconciliation in 3 instances - before the lawsuit is filed, during the hearing, and before the judgement is given. The violator must pay an amount equivalent to the minimum fine for tax evasion as well as the actual tax amount that was due. Completed reconciliation will result in the end of the criminal case.

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