Mawazin Business Solutions – موازين لحلول الأعمال

تكريم “مــوازيــن” لمشاركتها الفاعلة في دورة عامر الرمضانية – عالي

Neha Raghuwanshi — Sun, 02 Jun 2019 08:35:05 +0000

كرم القائمون على بطولة المرحوم عامر الرمضانية“ الخامسة” للكرة الطائرة 2019م شركة موازين لحلول الأعمال وذلك لمشاركتها ودعمها الفاعل لهذه الدورةز

وأكد الإداري للدورة السيد جعفر علي حسن أن هذا التكريم يأتي في سياق تشجيع المؤسسات في منطقة عالي للتواصل مع شبابها ودعم الرياضات المختلفة في المنطقة.

وأشاد السيد جعفر بالنجاح الذي حققته الدورة الحالية متمنياً دوام التوفيق لكل من ساهم في ذلك

The post تكريم “مــوازيــن” لمشاركتها الفاعلة في دورة عامر الرمضانية – عالي appeared first on Mawazin Business Solutions - موازين لحلول الأعمال.

Mawazin Partisipated at BTI Career Week 2019

Neha Raghuwanshi — Sun, 07 Apr 2019 06:15:57 +0000

Mawazin Business Solutions, Tally Authorized Partner in Bahrain, presented a number of job vacancies for Bahraini graduates at Careers Week 2019.

The event was organized and hosted by the Bahrain Training Institute (BTI) under the patronage of the Minister of Education Dr. Majid bin Ali Al Nuaimi, and included the participation of several companies and institutes in the public and private sectors.

The Mawazin Business Solutions presented Bahraini graduates with job vacancies in various departments within the company, in order to attract Bahraini talent while providing them with guidance. In addition, Mawazin highlighted its objectives for the National Employment Program which aims to boost the employment of locals in private sector.

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Important terms under VAT in Bahrain

Neha Raghuwanshi — Fri, 08 Feb 2019 14:47:48 +0000

It is important to understand the meaning of the frequently used terms and definitions under VAT. These terms will soon become a part of your daily business conversations with all your stakeholders. Let us understand the important terms under VAT in Bahrain, along with their respective meaning.

Terms	Meaning
Goods	All types of physical assets that can be supplied, including real estate, water, and all forms of energy. Example: Cars, apparel, electronics, etc.
Services	Anything that can be supplied other than goods Example: Legal services, professional services, car repair, etc.
Supplier	A person who supplies (sells) goods or services
Recipient	A person who receives (purchases) goods or services from a supplier
Consideration	Everything collected or to be collected by a supplier from the recipient or a third party for supply of goods or services Example: Ahmed Electronics supplies 100 mobile phones @ BD 100 each to Niyaz Electronics. VAT @ 5% (BD 500) is charged on the supply. Here, the consideration to be collected by Ahmed Electronics is BD 10,500 including VAT.
Taxable person	A person, being a natural or legal person, who carries out an economic activity that requires them to register under VAT. Only a taxable person can charge VAT.
Registrant	A taxable person who has been issued a VAT registration number
Export	Supply of goods or services from Bahrain to another country
Import	Supply of goods or services from another country to Bahrain
Capital assets	Material and immaterial assets of a business allocated for long-term use Example: Buildings, machinery
Input tax	Tax paid by a taxable person on goods or services purchased Example: Ahmed Electronics purchases 20 laptops @ BD 1,000 each from Ziya Computers. VAT @ 5% (BD 1,000) is charged. Here, Ahmed Electronics’ input tax is BD 1,000.
Output tax	Tax charged by a taxable person on supply of goods or services Example: Ahmed Electronics supplies 50 laptops @ BD 2,000 each to Niyaz Electronics. VAT @ 5% (BD 5,000) is charged on the supply. Here, Ahmed Electronics’ output tax is BD 5,000.
Input tax deduction	A mechanism by which a VAT registered person can deduct input tax from the output tax for a period and only remit the balance tax payable to the Government. Example: In the above example, Ahmed Electronics’ output VAT on supply to Niyaz Electronics is BD 5,000 and input VAT on purchase from Ziya Computers is BD 1,000. Ahmed Electronics can claim input tax deduction of BD 1,000 and only remit the balance output tax (BD 4,000) to the Government.
Taxable supplies	Supplies on which VAT is charged and input tax deduction can be availed
Exempted supplies	Supplies on which no VAT is charged, and no input tax deduction can be availed
Tax invoice	A written or electronic document where the occurrence of a taxable supply is recorded
Tax credit note	A written or electronic document where the occurrence of any amendment to a taxable supply, that reduces or cancels the same is recorded
Tax period	A period for which the tax payable needs to be calculated. Tax periods are usually monthly, quarterly and annually.
Tax return	Statement to be prepared and submitted by a taxable person for a tax period. It contains the details of sales, purchases, output tax, input tax, tax payable, etc.

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VAT Rate in Bahrain

Neha Raghuwanshi — Fri, 08 Feb 2019 14:44:23 +0000

While the authorities are working in full swing to implement VAT on 1st January 2018, it is very important for businesses to understand the VAT concepts and accordingly prepare towards it. In this article, we will understand the structure of the VAT Rate in Bahrain.

The standard VAT rate in Bahrain is 5%, levied on all taxable supplies. The following is the structure of the VAT rate in Bahrain.

Bahrain VAT Rate Structure
Rate Type	Rate of Tax
Standard Rate	5%
Zero-Rated Supplies	0%
Exempt Supplies	Nil

As mentioned in the above table, broadly the VAT rate in Bahrain is classified into Standard Rate, Zero-rate and Nil rate. The Standard rate of VAT at 5% will be levied on all the supplies barring few which are either zero-rated or exempt from the VAT. The businesses registered under Bahrain VAT are responsible to levy VAT at 5% on all taxable supplies and remit the VAT collected to the government.

In order to levy the right rate of VAT on the supply of goods or services, it is important for the businesses to identify the type of supplies and determine the VAT applicability. The following steps will help you to determine the VAT applicability and help you to charge the right rate of the VAT.

Understand the type of supplies you are making – Supply of Goods or Services
Know the supplies which are notified in law as zero-rated or exempted from the VAT
Identify whether any of your supplies are under a zero-rated or exempt supplies list.
If none of your supplies is under the zero-rated list and exempt list, it is understood that all your supplies are taxable supplies and you need to charge VAT at 5%.
If few of your supplies are under zero-rated list or exempt list, except those, all others will be taxable supplies and you need to charge VAT at 5%.

Supplies such as export of goods or services, notified transportation service of passengers, basic healthcare services etc. are zero-rated. Certain notified supplies such as financial services, bare land, building etc. are exempt from Bahrain VAT. However, these are subject to the conditions prescribed in Bahrain VAT regulation which is yet to be released.

In our next article, we will discuss on Zero-rated supplies and exempt supplies in Bahrain VAT.

Conclusion

The VAT is transaction based tax i.e. VAT is levied on every single transaction which is taxable. Thus, it is very critical for businesses to understand the goods or services they are supplying and determine the VAT applicability. With just 6 weeks to go for VAT implementation on 1st January 2018, it is important to start this activity such that you are prepared in advance and avoid unnecessary confusion or consequence of non-compliance

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Who should register under VAT in Bahrain?

Neha Raghuwanshi — Fri, 08 Feb 2019 14:36:45 +0000

The first compliance activity for all businesses in Bahrain is to register under VAT. Businesses must know about who is obligated to register under VAT. Certain businesses are mandatorily required to obtain a VAT registration. At the same time, there is also a provision to voluntarily register under VAT. In addition, certain businesses are exempted from registering under VAT. Let us understand the rules on who should register under VAT in Bahrain.

Who should mandatorily register under VAT?

A person who is resident in Bahrain should obtain a VAT registration in the following 2 cases:

Value of supplies in the previous 12 months exceeds BD 37,500 or
Value of supplies in the next 12 months will exceed BD 37,500

The mandatory registration threshold under VAT in Bahrain is BD 37,500.

Note: A non-resident person in Bahrain must register under VAT, regardless of the value of supplies, if he/she makes supplies for which VAT is liable to be charged. The person can take registration either directly or through a tax representative.

Who can voluntarily register under VAT?

A person can voluntarily seek a VAT registration in the following 2 cases:

Value of supplies or expenses in the previous 12 months exceeds BD 18,750
Value of supplies or expenses in the next 12 months will exceed BD 18,750

The voluntary registration threshold under VAT in Bahrain is BD 18,850, i.e. 50% of the mandatory registration threshold.

Voluntary registration threshold: BD 18,750

Businesses who take voluntary registration generally do so for the benefit of the input tax deduction, i.e. the facility to deduct input tax (tax paid on purchases) from the output tax (tax collected on sales) and only remit the balance tax payable to the Government. This is a major benefit of taking a VAT registration. Businesses which don’t have a VAT registration will not be able to claim an input tax deduction and the VAT paid on purchases or expenses becomes a cost. There are other benefits of registering under VAT, such as the ability to issue a VAT invoice and the credibility that comes with a VAT registration. Businesses whose turnover exceeds BD 18,750 but does not exceed BD 37,500 can decide on whether they would like to voluntarily opt for VAT registration.

Who is exempted from registering under VAT?

A person who makes only zero-rated supplies can request to be exempted from registering under VAT. Some examples of zero-rated supplies are the supply of newly constructed buildings, export of goods to a non-GCC VAT implementing State, etc.

Exemption from VAT registration: Persons making only zero-rated supplies

Conclusion

Businesses in Bahrain must evaluate the value of their supplies and check whether they are required to register under VAT. If the value of supplies exceeds BD 37,500 in the previous 12 months or will exceed BD 37,500 in the next 12 months, it is required to obtain a VAT registration. Non-resident businesses in Bahrain must note that they must register under VAT, irrespective of the value of their supplies, in case they make supplies for which VAT is liable to be collected. Further, an option to voluntarily register under VAT has been given to businesses. To voluntarily register under VAT, the value of supplies in the previous 12 months should exceed BD 18,750 or the value of supplies in the next 12 months should be expected to exceed BD 18,750. Also, an exemption from registering under VAT has been given to persons who only make zero-rated supplies.

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What is VAT and how does it work?

Neha Raghuwanshi — Fri, 08 Feb 2019 14:31:36 +0000

Bahrain is the third GCC Member state to implement VAT after UAE and Saudi Arabia. You must have read our previous article’ Important terms under VAT in Bahrain’, which talks about the common terms frequently used in dealing with VAT. In this article, let us understand what is VAT and how does VAT system work?

What is VAT?

Value Added Tax known as VAT is an indirect tax charged on the supply of goods and services as well on imports. In general, it is consumption tax levied on value addition in each stage of the supply chain. This is achieved through the concept of input VAT deduction which allows the business to set off the VAT paid on purchases (Input VAT) with the Vat collected on the sales (Output VAT).

To know What is input VAT and Output VAT, please read our article ‘Important terms under VAT in Bahrain’

How does the VAT System work?

The businesses registered under the VAT act as an appointed agent of the government to collect and remit VAT and the entire burden of paying 5% VAT is on the final consumer. To make it clearer, we need to understand the mechanism of the VAT system.

Let us understand how the VAT System works with the example.

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Introduction to VAT in Bahrain

Neha Raghuwanshi — Fri, 08 Feb 2019 14:26:27 +0000

‘VAT in Bahrain’ is a buzzword among the businesses located in Bahrain.

Bahrain VAT Implementation

On 9^th October 2018, Bahrain VAT Laws under the Royal Decree No. (48) of 2018 was approved and was released on its official website. The Bahrain Tax laws officially mention the implementation of VAT in Bahrain from 1st January 2019. While the approval of VAT laws itself is a significant milestone in the process of implementing VAT in Bahrain, the following are some of the important next steps which will soon be announced by the tax authorities.

Finalization of VAT Regulations
VAT procedures and related circulars
Bahrain VAT Portal Readiness
Opening registration in Bahrain VAT Portal along with the registration timelines
Finalizing VAT return format and portal readiness
Knowledge sharing user Guide on various aspects of VAT in Bahrain.

No Doubt! The authorities are working on full swing to do all that requires to implement VAT in Bahrain on 1^st January,2019.

Business readiness for VAT in Bahrain

While most of the critical things in implementing Bahrain VAT will be ready very soon, this doesn’t mean that businesses need to wait till then to prepare their business towards the VAT regime.

For sure, VAT in Bahrain is coming and coming very fast on 1^st January 2019 which is just a few weeks away. Thus, it is important for businesses to start preparing in-advance and be ‘VAT-Ready’. Being ‘VAT Ready’ does not mean your readiness on the 1st January 2019, it signifies about today’s readiness for VAT.

First of which is about ensuring that all the financial transactions are recorded, and books of accounts are accurate and up to date. This is because, the books of accounts will act as evidence for minimum annual turnover threshold limit for registration and on this basis, either you will be mandated to register, or you can request for exemption from registration.

Secondly, VAT being a transaction-based tax, meaning on every taxable supply of goods or services, VAT at 5% needs to be charged and Vat bill is known as ‘Tax invoice’ needs to be issued from the first day of 1st January 2019 onwards. On the purchase side, you will be allowed to recover the VAT paid as Input VAT deduction. The net of VAT paid on purchases and VAT collected on sales should be paid to the government along with the VAT returns.

Thus, in order to be VAT ready, businesses need to explore the best VAT Software which will not only help you to be VAT compliant tomorrow – when VAT is implemented in the country but will also help you transit seamlessly into the new VAT era.

Apart from the above, VAT impacts every function within the organization such as finance, supply chain, product pricing, sales, procurement, legal, commercial, logistics, HR etc. As a business, you got few weeks before implementation of VAT in Bahrain and it is important to use these in understanding the VAT fundamentals, educate your teams on VAT, study the possible impact on your business operation and make suitable changes to be VAT compliant from day one.

Educating and Informing the external stakeholders such as your vendors and customers about VAT and the subsequent impact on transactions is equally important in process of preparing towards VAT.

Any lapse in your preparedness towards VAT in Bahrain may impact your credibility which you built over the period with your customers and vendors and will have bearing on your profitability owing to loss of Input VAT and hefty fines due to non-compliance.

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Tally.ERP 9 for simplified VAT compliance in Bahrain

Neha Raghuwanshi — Fri, 08 Feb 2019 14:22:47 +0000

Businesses in Bahrain can rely on Tally.ERP 9 for the seamless transition to VAT and regular compliance with VAT rules. Tally.ERP 9, trusted by more than 1.2 million businesses globally, is backed by over 30 years of expertise in building software for VAT in different tax environments. In the GCC, Tally.ERP 9 is an accredited VAT software by the FTA (Federal Tax Authority) in the UAE and the GAZT (General Authority of Zakat and Tax) in Saudi Arabia.

Quick invoicing

You can start creating VAT compliant invoices in Tally.ERP 9 within minutes of installation. You can also record transactions relating to a range of business scenarios such as discounts, freight charges, foreign currency transactions, exports, as well as self-account for VAT on a reverse charge, input tax credit and advance receipts. VAT invoices can be printed in Arabic, English or both in Tally.ERP 9.

Reliable detection of errors

Tally.ERP 9 has the unique capability to detect errors and mismatches between your transactions and configurations. Say that you have entered the wrong TRN (Tax Registration Number) or wrong transaction details. Tally.ERP 9 will alert you and let you correct the error by giving you the reason for the error. With Tally.ERP 9, you can be sure that your transactions are compliant and ready for audits at any time.

Simple return filing

In Tally.ERP 9, your VAT return is updated real-time as you keep entering your transactions. Any errors in your transactions are detected and shown to you along with the reason for the error. You get an in-depth tax computation and analysis of your VAT return before filing. Changes in return forms are updated on time to ensure that your returns are accurate and up-to-date. Using Tally.ERP 9 also simplifies the work of your tax consultants as VAT returns and audit reports can be generated at the click of a button. With Tally.ERP 9, return filing will never be a dreaded activity.

Flexible features

Tally.ERP 9 is a complete business management solution which caters to all your business needs. Along with VAT, you can manage your financial accounts, inventory, banking tasks, payroll and much more. You can always also remain connected with your business, through our trusted feature of Remote Access. The transactions from all your locations can be consolidated at one location with no special effort.

Be fully VAT compliant with Tally.ERP 9 with complete peace of mind.

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VAT Session NOV 2018

Ali Ebrahim — Sun, 11 Nov 2018 14:05:44 +0000

Mawazin Business Solutions in association with Tally Solutions Conducted a VAT Session in the Mawazin office, This is the Third Session in Two Months as the VAT Comming soon to Bahrain, Most of the companies they have accounting software but they do not know if the software they are using is supporting VAT or its VAT compatible.

We at Mawazin Business Solutions have all your answers about VAT …

To Know more please register for the next VAT session and book your chair

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Register yourself for the next workshop & Do More with your Tally.ERP 9!

Neha Raghuwanshi — Wed, 15 Aug 2018 22:57:42 +0000

As we are fully booked, we apologize for not being able to take further reservations to the VAT Awareness Session ! should you wish to reserve to the next session please fill the form- thank you.

Registeration form

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