Tax Audit

Tax Audit Service in Bahrain

An official investigation by the National Bureau of Revenue (NBR) to confirm information or find fraud and incorrect tax returns is known as a tax audit. The NBR has the authority to pick tax returns to review both at random and on purpose. A tax Audit is a procedure carried out by the Authority to audit the commercial records or other information or data related to a Person conducting Business, according to the VAT Law.NBR may perform the Tax Audit at its office or the place of business of the Person subject to the Tax Audit or any other place where such Person conducts Business, store goods or keep records.
It is basically a formal examination of the company’s VAT Ledgers, Sales and Purchases Ledgers Trial balance reconciliation with standard rated sales, Zero rated sales, Out of scope and Exempted Sales and physical inspection of Purchase Tax Invoices and Sales Tax invoices for the Tax period. A Top Tax Audit firm in Bahrain ensures that all liabilities are cleared and every tax due is collected and given to the government during the specified timeframe.
Businesses must submit VAT returns, which must be properly prepared and recorded with the right values in the right boxes with the help of a Top Tax Audit firm in Bahrain. Tax Agents in Bahrain can assist you and complete it within the time frame specified Best Tax Audit services in Bahrain.The tax owed must be paid in full and cleared off on or before the deadline.You can obtain assistance from the tax agents and get it completed within the allotted period.
Most importantly, the tax owed must be paid in full and discharged on or before the deadline. If you previously employed a licensed tax agent, he will ensure that the company conforms with NBR VAT laws (that your dealings are made valid and legitimate and you carry out a safe and clean business.)

Preparing for Tax Audit:
The company can eliminate the fear of Tax Audit by planning and organising the accounting and return filing with the help of a tax consultant of a Top Tax Audit firm in Bahrain. Following the guidelines of professional consultants will boost the confidence of the businesses to face the Bahrain tax audit with their best Tax Audit services in Bahrain.
Below are some of the tips to prepare the businesses for tax audits in the Bahrain.

1. System Review
Businesses must make sure that there are no discrepancies in any records because tax auditors look over all transactions that are related to taxes. Businesses in Bahrain can review their systems with the help of experienced tax consultants to ensure that transactions are properly recorded.

2. Tax Calculations Review:
Businesses must focus on both output and input tax calculations to ensure compliance with Bahrain VAT laws. The consultant will ensure that you comply with Bahrain VAT Law.

3. VAT Returns Review:
Businesses that have registered for VAT are expected to submit their VAT returns online using the NBR site. The process of filing a VAT return comprises entering the values of sales, purchases, output VAT, input VAT, and other transactions online into the appropriate boxes on the VAT return form on the NBR portal. Businesses may make sure that the returns are submitted correctly by working with the best advisors.

Corrective Actions:
The results of a VAT audit conducted by authorised tax agents before notification of an NBR audit may be as follows :

    • The entity’s management will receive the Accounting Archiving Report and Accounting
      Data Adjustment Report along with observations and recommendations for
    • If amendments to the tax periods are required, voluntary disclosures will be created and
      submitted to NBR.
    • Adjustment will be made in the following tax period if the impact of the VAT is less than
      the voluntary disclosure requirement:

Advantages of engaging consultant

  • Businesses that adhere to NBR regulations on VAT will not be subject to fines or penalties.
  • The business will be ready for the NBR audit.
  • During the audit phase, management may have questions about NBR rules and VAT reporting.

What is NBR Audits?

A tax audit is basically a government’s assessment of a company about their responsibility as a taxable entity. The NBR is conducting this audit to make sure that all debts are settled and that all taxes are collected and paid to the government within the allowed time frames. The government also assesses a company whether they are following the responsibilities that apply to their business as per the tax laws. The auditor may ask for business records, in original and/or copies, and take samples of goods and other assets as available at the place at the time.

How can VAT Audit Services provided by GSPU,a Top Tax Audit firm in Bahrain help your Company ?

1. Ensure VAT Compliance
The audit will facilitate a review of previously reported VAT returns with the intention of identifying any errors, thereby avoiding the risk of non-compliances being found by the Tax Authority itself, which can result in higher penalties for companies. Identification of errors or non-compliances at an earlier stage is essential as it allows companies to take appropriate corrective measures (such as a Voluntary Disclosure scheme where applicable) which can save the company from a higher penalty burden in the eventuality of an official tax audit by the Authority.
2. Facilitates Cost Saving
Due diligence checks will lessen the chance of unintentional double payment of VAT, incorrect VAT being charged by the suppliers, etc. and further help to lessen exposure to penalties from the Tax Authority.
3. Helps Prepare for Future
Businesses will be prepared to face official tax audits by having all the required details ready on hand and avoid errors which may happen due to last-minute hastiness.
4. Support the Economy of the Country
As compliance is thoroughly examined, the chances of fraud to be conducted by the business are greatly reduced.

What are the Records to be maintained for a Tax Audit?

As per Article (78) of Federal Decree-Law. Records to Be Maintained for a Tax Audit are:

  • Records of all supplies and Imports of Goods and Services.
  • All Tax Invoices and alternative documents related to receiving Goods or Services.
  • All Tax Credit Notes and alternative documents received.
  • All Tax Invoices and alternative documents issued.
  • All Tax Credit Notes and alternative documents issued.
  • Records of Goods and Services that have been disposed of or used for matters not related to Business, showing Taxes paid for the same.
  • Records of Goods and Services purchased and for which the Input Tax was not deducted.
  • Records of exported Goods and Services.
  • Records of adjustments or corrections made to accounts or Tax Invoices.
  • Details of Goods imported to the state along with Customs declarations and Supplier Invoices.
    The NBR may request any additional documents they think necessary during an audit to determine the tax obligations, therefore this list is not exhaustive but rather superficial.

  • What is the Importance of Tax Audit Review in your Organization?

    The Federal Tax Authority, the ultimate constitution in charge of collecting and managing federal taxes, is notorious for ineffectively discouraging taxpayer noncompliance. If a registrant is found guilty of violating any of the laws or regulations issued by the Ministry, they could face harsh penalties, such as jail time and other monetary fines.

    Conducting a VAT health check-up or a tax audit review in your company from a Top Tax Audit firm in Bahrain is always preferable to risk falling under the suspicion of non-compliance with VAT. Finding discrepancies between your organization's tax policies and the proper practices as per Bahraini tax laws is the goal of a VAT audit review. Since it will better prepare your company to deal with a VAT Audit, it is wise to say that a tax audit review is more of a necessity than an option.

    Understanding the root causes of non-compliance will help you address them in the present and the future. It will assist you in locating the areas that need to be corrected while guaranteeing the accuracy of taxes paid. The NBR has provided taxpayers with several choices for correcting their errors before the assessment process, such as submitting a form for Reconsideration or a Voluntary Disclosure depending on the circumstance.

    How GSPU can help

    Examines books of accounts by standard
    auditing procedures

    Our auditor expresses his/her opinion on whether the
    accounts have been properly maintained and whether
    they have met all auditing requirements.

    Analyze social media strategy on various platforms,
    as well as competitors

    We analyze lead generation from social media driving traffic
    to your website and analyze the engagement on your
    social platforms.

    Ensures that the company's risk-reduction

    We create risk assessment systems for global, financial,
    general, economic, political, industry, and company-
    specific hazards.

    Assists in Future Planning

    Businesses will be better prepared to face official tax audits
    if they have all of the relevant material produced by us and
    avoid errors caused by hurry at the last minute.

    Inquires company entity's financial, legal, &
    other statutory compliances

    We examine a business entity before entering into a contract
    or other agreement that calls for a certain standard of care.

    Assists the organization in the prevention of fraud

    Based on our analysis of the company's questionable financial
    and operational records, we produce a fraud investigation report.

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