Bahraini VAT registration

For resident businesses in Bahrain, mandatory VAT registration is required when annual taxable supplies exceed BHD 37,500 (or are expected to exceed that amount in the next 12 months).

A voluntary registration option is available when annual taxable supplies and/or expenses exceed BHD 18,750 but do not yet meet the mandatory threshold. 

For non‑resident businesses (those without a fixed place of business or fixed establishment in Bahrain), there is no minimum threshold — registration is required as soon as taxable supplies are made in Bahrain to non‑VAT registered persons or end‑consumers. 

Resident and non-resident businesses may need to register for VAT in Bahrain if they engage in the following activities: 

• Importing goods into Bahrain (acting as importer of record) 

• Supplying standard‑rated goods or services in Bahrain to non‑VAT‑registered customers or end‑consumers 

• Holding stock or goods for sale in Bahrain (e.g., local warehousing or fulfilment) 

• Providing services in Bahrain that are standard rated and where Bahrain VAT must be collected 

• Supplying digital, telecom, or broadcasting services to Bahraini consumers (if local VAT rules apply) 

• Conducting business in Bahrain without the availability of the reverse charge mechanism 

Applicants must generally provide the following: 

• Corporate documents (e.g., commercial registration certificate, memorandum/articles of association)

• Bank details (IBAN, bank account documents) 

• Details of anticipated and actual supplies and expenses for past 12 months and next 12 months 

• Contact and business details (legal name, address, trade licence, etc.) 

• For non‑residents: Appointment of a Bahraini fiscal/VAT representative, if required  

  
  

Once approved, a VAT registration certificate is issued showing the VAT account number, which must be displayed in the registered location. 

The certificate will display a VAT account number issued by the National Bureau for Revenue (NBR), which uniquely identifies the VAT‑registered person. 

• Structure: 15-digit numeric code (e.g., 123456789012345) 
  • The number consists solely of digits and does not include a country code or suffix. 

Businesses receive an acknowledgment once their VAT registration is submitted. The NBR then reviews the application and issues a VAT certificate with the VAT number upon approval. 

Resident businesses typically receive their VAT number within 5 to 10 working days if the application is complete, though it’s best to allow 1 to 2 weeks. Processing may take longer for non-resident businesses. 

Once registered, businesses must comply with Bahraini VAT obligations: 

• Charge VAT at the appropriate rate (standard, zero‑rated, or exempt) on taxable supplies in Bahrain 
• File periodic VAT returns and make VAT payments on time 
• Maintain suitable records and invoices meeting Bahrain VAT requirements 
• Claim input VAT on eligible purchases (subject to conditions) 

Noncompliance (failure to register when required, late filing or payment, incorrect returns) may result in penalties, interest, and other sanctions. 

Businesses in Bahrain may apply to form a VAT group under the following conditions: 

• All member entities must be resident in Bahrain and engaged in economic activity. 
• Members must already be individually VAT‑registered before applying for group registration. 
• Members must be “related persons” (e.g., one controls or supervises the others) and no member may belong to more than one group. 
• The group must appoint one member as the representative for the VAT group. 
• The group registration application and any updates (adding or removing members) must be submitted to the NBR. 

VAT‑registered businesses must keep records of all VAT‑relevant transactions (sales, purchases, imports/exports, adjustments) and supporting documentation for each VAT period. While the law does not publicly specify a fixed minimum retention period in all cases, records should be maintained long enough to support any return, refund claim, or audit by the NBR. 

Suppliers of digital, telecom, or broadcasting services to Bahraini consumers must register for VAT if they make taxable supplies in Bahrain and cannot rely on domestic reverse charge. 

The reverse charge mechanism may apply where services are supplied by non‑residents to Bahraini VAT‑registered persons, so registration may not be required since the Bahraini customer accounts for the VAT. 

Businesses should check whether specific guidance applies to their service type and customer category.