Bahrain VAT return guidance

Following the 1 January 2019 introduction of 5% VAT in Bahrain, the local National Bureau for Revenue has issued updated guidance on requirements for VAT returns. The guidance includes:

• Only VAT registered persons, or their appointed agents, may file returns. No other party may submit the return
• Returns must separately include the VAT charged, ‘output VAT’, and VAT paid on acquisitions, ‘input VAT’. The balance of VAT due must then be settled. Alternatively, if there is a negative or ‘credit’ balance, then an application must be submitted for a refund.
• The obligation to submit returns even where there were no taxable transactions, ‘nil returns’
• From the end of 2019, the transitional implementation filing periods will end. From 2020, taxpayers with sales above BHD 3million will file monthly. Other taxpayers will file on a calendar quarterly basis.