VAT REGISTRATION

Home VAT REGISTRATION

The Bahraini government issued Decree (48) of 2018 on Value Added Tax. Bahrain’s National Bureau of Revenue is the government agency in charge of implementing and managing VAT. The system is in charge of recording VAT and related obligations and validating and evaluating submitted statements. In addition, the National Bureau of Revenue must reimburse the recoverable amount, collect any outstanding amounts, and conduct audits. Furthermore, the authority is in charge of reviewing and issuing decisions on grievances, as well as monitoring and implementing VAT compliance on an ongoing basis.

When purchasing any taxed goods or services, the final consumer must pay VAT. In turn, businesses pay the National Bureau of Revenue VAT collected from the final consumer and recover the added value paid to their suppliers.

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VAT will not applicable for:

 

  1. Basic food items
  2. Basic medical services
  3. Passenger transportation
  4. The oil and gas industry 
  5. International airline tickets

 

VAT Registration Service Types

 

There are two types of VAT registration services; before applying for VAT registration, businesses will select one category based on their annual turnover. 

The VAT registration categories are as follows:

  1. Mandatory VAT Registration
  2. Voluntary VAT Registration

Many factors should be considered by businesses before applying for VAT registration processes, such as whether to apply for mandatory VAT registration or voluntary VAT registration. Another consideration is whether to apply for single VAT registration or a Tax group.

When should you register for VAT?

Each country has its own set of requirements for VAT registration. The VAT registration threshold varies by country for both mandatory and voluntary VAT registration.

Bahrain VAT Registration

  • Mandatory VAT registration: Companies or individuals with an annual turnover of BD 37,500 or more in Bahrain must apply for VAT registration, according to the National Bureau of Revenue (NBR).
  • Voluntary VAT registration: Companies or individuals with an annual turnover of more than BD 18,750 but less than BD 37,500 can apply for VAT Registration voluntarily.