Bahraini VAT compliance
Bahraini VAT registration
The compulsory VAT registration threshold in Bahrain is BHD 37,000 per annum. A voluntary registration for businesses below this threshold is permitted, although this has its own minimum threshold of BHD 18,850 per annum.
There is scope for related businesses to apply for a single, Group VAT registration.
There is no threshold for non-resident businesses, which must register prior to their first supply. Foreign registrations may be either direct, or via a local Fiscal Representative.
Bahraini VAT invoices
VAT invoices must contain the following information as a minimum:
- Date of invoice (and date of supply if different)
- Unique, sequential invoice number
- Tax ID number of the supplier
- Name and address of the supplier and customer
- Description and quantity of the goods supplies; nature of services provided
- Gross, VAT and net values of supply
- VAT rate applied, and explanation where not the standard rate
Invoices must be issued within 15 days following the month of supply of the taxable goods or services.
Bahraini VAT Returns
Registered tax payers must submit their periodic returns each month. Returns must be filed by the last working day of the month following the reporting period.
Penalties for non-compliance
The following penalty regime for non-compliance is in place, with financial penalties and potential prison terms:
- BD10,000 for failure to register for VAT within 60 days of the required date
- Failing to issue a VAT invoice within 15 days of the month following the taxable supply
- Failing to submit a VAT return and/or pay any VAT due by the end of the month following the reporting month
Latest Bahrani news
The Ministry of Finance has commented on the planned October 2019 implementation..
October 13, 2018
Bahrain is to introduce a 5% VAT from 1 January 2019. The following rules will apply to supplies contracted and supplied over the introductory period. Where...
October 7, 2018
Updated 8th Oct: the parliaments Upper House has passed the Bill tonight. Royal Assent is now a formality within the next week. Bahrain’s parliament...
February 23, 2018
The Bahraini Finance Minister has confirmed the Gulf state’s plan to launch a 5% VAT regime before the end of 2018. The implementation date...
February 15, 2018
The International Monetary Fund (IMF) has declared that the Arab Gulf states of Bahrain, Qatar, Oman and Kuwait will not be prepared for the...
January 16, 2018
Newspaper reports claim the Bahraini Ministry of Finance has confirmed that it will launch a 5% VAT regime on 1 October 2018. Supplies subject...
January 9, 2018
Bahrain has committed to introduce a 5% VAT before the end 2018. The state was one of the six Gulf Cooperation states which signed...
January 6, 2018
As the first two Gulf states, Saudi Arabia and UAE, join this week the other 160-plus countries with a VAT regime, the old objection...
January 1, 2018
Saudi Arabia and the United Arab Emirates (UAE) have today become the two latest states to impose Value Added Tax on their consumers. From...
November 5, 2017
A key parliamentary committee, Financial and Economic Affairs Committee, in Bahrain has rejected latest tax reform proposals, including plans to introduce VAT. The rejected Bill...
October 30, 2017
The six member states of the Gulf Co-operation Council agreed under the Gulf VAT Treaty this year to introduce 5% VAT as a harmonised, VAT...
May 25, 2017
As the six Arab Gulf states prepare for the launch of 5% VAT from 1 January 2018, many questions and concerns remain unaddressed. Legal...