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Accounts and Business records to be maintained under VAT in Bahrain

Accounts and Business records to be maintained under VAT in Bahrain


It is the compliance responsibility of the businesses registered under Bahrain VAT, to maintain books of accounts and records. The VAT in Bahrain mentions different types of records to be maintained and also time period of retaining such records.

In this blog, we will see the different types of records that are to be maintained under Bahrain VAT and time period for retaining it.


Retention of Records and Accounting Books


The following records and books should be maintained by a VAT registered business in Bahrain:

  • The Books of Account which are related to taxable person’s work (all the transactions according to their chronological and numerical order)

  • Balance sheet and profit and loss account

  • Records of salaries and wages

  • Fixed Assets record


  • Stock records and accounts at the end of any relevant tax period

  • A copy of  tax Invoices, credit and debit notes issued, and original Tax Invoices received by the taxable person

  • All customs documents relating to import and export transactions carried out by the taxable person

These are the records that should be retained in a good and secure way to avoid any damage, and in a manner that they can be read and reviewed. 


Retention Period of Records and Accounting Books


Every taxable person should retain the records and accounting books for a period of 5 years from the end of the tax period to which it relates.

Records which are related to capital assets should be retained for 5 years from the end of the tax period in which the adjustment period for such assets ends. And, records which are related to real estate should be retained for a period of 15 years from the end of the tax period to which they relate.


Retention of Record and Accounting Books Electronically


A taxable individual may retain records and accounting books electronically if the following conditions are met:

  • Easy access of the records and books of accounts from the computer system upon the Bureau’s request.

  • Ability to keep documents and records that support the records and the accounting books electronically or in hard copy.

  • Records and accounting books are kept securely where no tampering or manipulation can occur.

The bureau has the right to review the computer system or accounting software used by a taxable person to ensure its compliance with the provisions of the law and these regulations.

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