The threshold for mandatory VAT registration in Bahrain is BD 37,500. BMS Auditing Bahrain is offering hassle-free VAT registration services in Bahrain. Every business or individual in Bahrain should follow Bahrain's VAT compliance and register with VAT. All the businesses must know, who is liable to register under VAT. However, there is an option to voluntarily register under VAT, while there are businesses that are totally exempted from VAT registration.
Who should register for VAT?
Registration follows a phased process wherein the business entities or the individuals within particular VATable supply groups need to register by specific dates.
Mandatory VAT Registration
Entities and individuals annually generate revenue more than the threshold of BHD 37500 and not more than BHD 500,000 annually are eligible for Mandatory VAT registration.
Voluntary VAT Registration
Entities and individuals generating revenue of more than BHD 18,750 annually are eligible for Voluntary VAT registration.
VAT Registration for Non-residents in Bahrain
Non-residents (without a fixed place for business or a fixed establishment) should register for VAT in 30 days from the first taxable stock to non-taxable persons, irrespective of the thresholds.
Non-residents could apply for VAT registration in Bahrain with the National Bureau for Taxation (NBT) directly, or by appointing a Tax representative to pay on their behalf.
Documents Required for VAT Registration in Bahrain
There are certain VAT registration requirements in Bahrain. The important documents required to apply for the online VAT registration are as follows:
- Copy of Commercial registration certificate
- Independent Auditors report
- Audited Financial statement
- Report on expense budget
- Proof of the relationship between HQ and its subsidiaries
- Certificate of Customs Registration
- Copy of partnership agreement
- Copy of Incorporation certificate
- Copy of the identification of the designated individual
Learn More: Detailed explanation of VAT in Bahrain
VAT Rates in Bahrain
VAT registration in Bahrain refers to the process in which an entity or an individual is requested to enroll in VAT. VAT registration was introduced in January 2019 with a rate of 5%. A standard rate of 10% Value Added Tax (VAT) has been applied in the Kingdom of Bahrain with effect from 1 January 2022. The National Bureau for Revenue (NBR), is the government entity responsible for implementing and collecting VAT in Bahrain. When registered, a VAT account number would be assigned to them. Only the registered entities or individuals registered with the National Bureau for Revenue (NBR) would be eligible for a VAT Refund.
The following sales are to be considered for the VAT threshold:
- Standard rated products
- Zero-rated products
- Reverse-charged services received
- Imported goods
Bahrain VAT Rate List
Rate of Tax
Read More: VAT Layout in Bahrain
VAT Registration Services in Bahrain
BMS Auditing operates an efficient tax section that handles various types of indirect tax through the best tax consultancy services in Bahrain. You provide the details by email. We need only a soft copy of the documents, as the registration is done online. Upon receiving the documents and the necessary information for VAT registration, and on approval, we continue with the registration on the NBR portal with your email ID.
On completing the form-filling process, the draft would be forwarded to you for review and final approval. You may note that we would submit the form only if you approve the details in the draft. The NBR would process your application and respond to confirm your Tax Identification Number.