Bahrain has been committed to introducing VAT or Value Added Tax by January 01, 2019. Value Added Tax in Bahrain happens to be a welcome for the business development there. GCC countries also agreed for the implementation of VAT at the standard rate that is about 5%. The 5% value added tax will get launched in Bahrain by the end of December, i.e. January 01, 2019 with some exceptions. VAT happens to be the indirect tax which is charged on the selected goods as well as services that are bought and then sold by the businesses.

Value Added Tax Registration in Bahrain

Bahrain’s VAT registration is that process by which taxable entity is needed for registration for VAT. After registration, the dedicated account number of VAT is assigned to entity. The entity requires applying for the Bahrain registration of VAT upon giving the turnover and exceeding threshold as required.

The sales that are supposed to be considered are mentioned below:

  • Rated standard supplies
  • Reverse charged service received
  • Zero-rated supply, and
  • Imported goods

Nevertheless, the exempted supplies aren’t considered.

Things to know about ‘Mandatory Registration’

The taxable person in Bahrain having turnover exceeding BHD 5 Million on an annual basis legally requires going for the registration process for VAT by the end of 20th December, 2018.

The taxable person in Bahrain with turnover exceeding BHD 500,000 as well as BHD 5,000,000 on an annual basis requires registering for the VAT by the end of20th June, 2019.

The taxable person in Bahrain with turnover exceeding BHD 37,500 as well as BHD 500,000 on an annual basis requires registering for the VAT by the end of20th December, 2019.

Things to Know about ‘Voluntary Registration’

The taxable people having more than BHD 18,750 in the annual supplies also are eligible for the voluntary registration.

How are the Non-Residents in Bahrain able to register for VAT?

The non-residents who don’t own a fixed place for fixed establishment or business require going for the registration process for VAT within thirty days from the initial taxable supply to the non-taxable people in Bahrain irrespective of the thresholds that are stated above. The non-resident taxable people can even apply for the registration of Value added tax in Bahrain with NBT or National Bureau for Taxation by appointing Tax Representative for acting on behalf or directly even.

NBT comes with right for requesting and even obtaining necessary documentations from taxable entity in order to prove the registration needs and that they are met accordingly.

How to make profile in the NBT for VAT in Bahrain?

To make a profile in the NBT for value added tax, you need to first require filling form inn NBT website. The procedure can get completed on the Internet and require ensuring that it has to be done right before the prescribed date.

How will you be able to register for value added tax in Bahrain?

For applying, you have to access to the NBT website and initiate registration procedure. The procedure has been mentioned below.

Taxable entity should create the NBT profile. Then, taxable entity should populate NBT form as well as specify the information including Legal name, Address, Legal form, contact details, VAT date for eligibility, and more.

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