Phased rollout of VAT in Bahrain – Update 1

Phased rollout of VAT in Bahrain – Update 1

 • MOF would start issuing VAT registration numbers for companies having turnover more than BHD 5 million from today

• Procedure for voluntary and group registrations would be detailed out in the regulations

• The MOF will soon launch the website for VAT registration

• Certain Zero rated products would be linked to their HSN codes

• Import VAT to be applicable irrespective of the turnover limit or registration

• For supplies which are valued less than BHD 500, simplified invoices can be issued

• Bank statement would be considered as a valid invoice for claiming Input Tax deduction for bank related expenses

• Executive Regulations would be released in December, both in English and in Arabic

• MOF would share a readiness tool with the tax payers to guide them on the implementation front

• Anti-avoidance rules would be notified to ensure that company do not restructure their business entities so as to avoid VAT registration turnover limit

• Additional FAQs would be released by the tax authority bringing more clarity on various issues

• VAT awareness sessions would be conducted in the 2nd week of December 2018 by the MOF

• Several other sector-specific clarifications were provided by the MOF which would be expressly clarified in the Executive Regulations

Check our VAT Insight  Phased rollout of VAT in Bahrain [ 732 kb ]

 

About the Author

 

Nirav Rajput

Manager

Tax Advisory (VAT)

Grant Thornton Abdulaal

M +973 38967876

E nirav.rajput@bh.gt.com

 

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