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
    improvement.
  • 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.