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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


About the Author


Nirav Rajput


Tax Advisory (VAT)

Grant Thornton Abdulaal

M +973 38967876



This article is solely to provide useful information to the readers. Views expressed are personal and they do not necessarily reflect the views of the Company and further, the views are not binding on any person. The author and publisher are not offering it as legal, accounting, or other professional service advice.