No, you don’t need to reissue tax invoices that were created between January 1 and May 16, 2019, as long as the exchange rates used were from reliable sources (like Thomson Reuters, Oanda, or BAHRAIN banks) and the same source was used consistently for all the invoices.
What happens when the tax invoice is issued after May 17, 2018 but the date of supply was prior to that date?
If the date of supply is prior to May 17, 2019, the invoice must be converted using the relevant exchange rate for the date of supply. Historical exchange rates are published by the Central Bank of the BAHRAIN.
Where can I find the current exchange rates for different currencies?
You can find today’s currency exchange rates on the Central Bank website. If you need to convert an invoice using an earlier date’s exchange rates, use the historical exchange rates on the BAHRAIN Central Bank website.
Can the exchange rates be rounded off to fewer decimal places?
The exchange rates must be used exactly as published. Rounding them off to fewer decimal places is strictly not permitted. For example, if the published exchange rate for BHD to USD is 0.37780 then you must use exactly 0.37780 as the exchange rate for your invoices.
When are the exchange rates updated on the BAHRAIN Central Bank website?
The exchange rates are updated around 6 pm every day.
What happens if the invoice is issued before the exchange rates are updated for the day?
If the invoice is issued before the exchange rate is updated, then you can use the rate that was on the website when you raised the invoice (that is, the previous day’s rate).
How do exchange rates work for import of goods from other countries?
When you import goods into the country, the VAT applicable on them will be calculated based on your declarations to the customs department. This VAT declaration amount is auto-filled in box 6 of the VAT return form. The customs department converts invoices in foreign currency to BHD.
Does the customs department use the exchange rates published by the Central Bank?
The customs department doesn’t necessarily follow the exchange rates published by the Central Bank. In cases where exchange rates differ, you can use the exchange rates used by the customs department for declaring your imports.
How do exchange rates work for import of services from other countries?
The invoice generated for an import of services might be in a foreign currency. In this case, the tax liability for the service will be calculated by converting the currency using the exchange rates published by the Central Bank. The exchange rate used should be the one published on the date of supply of the service, and the date the invoice was issued should be used as the date of supply.