/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
Businesses registered under VAT are required to issue tax invoice on supplying taxable goods or services in Bahrain. To know more about the Tax invoice and simplified tax invoice, please read our article ‘VAT Invoice in Bahrain’. Similarly, in certain situations, the taxpayer needs to issue a Credit note. In this article, we will understand the following:
A credit note is a document that needs to be issued by the supplier in all those situations in which the VAT collected exceeds the VAT due on the supply.
The following are situations in which the Credit note needs to be issued by the supplier.
Let us understand Credit note with an example.
On 15-01-2019, Abdul & Co. supplies 10 Monitors @ 70 BHD each, to Ali Electronics. VAT charged on the supply is BHD 35. On the same day, Ali Electronics returns 1 monitor to Abdul & Co., as it was found to be damaged. In this case, Abdul & Co. should issue a credit note to Ali Electronics for the monitor returned and reverse the VAT charged on the monitor.
The issue of Credit note will impact the following:
The following are the mandatory details to be included in the Credit note:
The taxable person should retain Credit note for a period of five years from the end of the tax period to which it relates.
Example: A Credit note issued on 25th April’ 19 relates to the tax period of January-December '19. Hence, it should be retained until 31st December '24.
Read more on Bahrain VAT
VAT in Bahrain, Vat Return in Bahrain, VAT Return Format in Bahrain, How to file VAT Return under Bahrain VAT, What is VAT and how does it work in Bahrain, VAT Rates in Bahrain, Tax Invoice Format in Bahrain, VAT Payment in Bahrain, List of Exempt Supplies under VAT in Bahrain, Zero-Rated supply under VAT in Bahrain, Tax Identification Number (TIN)
Read more on Bahrain VAT Registration