FAQs

How to record UAE VAT on Services sold to customers in KSA and Bahrain?

The GCC member states of the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait have signed a common VAT agreement. Article 9 of this agreement set out how taxation on sales between these member states should be treated.

It says that if a taxable person in a member state receives taxable goods or services from a resident in another member state, then he shall be deemed to have supplied these goods or services to himself and the supply is taxable in accordance with the Reverse Charge Mechanism (RCM). Read more…

How should businesses register?

To register for VAT, taxpayers must first create NBR profile.
1. The taxpayer is required to populate the NBR form and specify their information including:
2. Taxpayer details (Legal name, Legal form, Address, contact details, VAT eligibility date etc.)

  • Commercial registration details (CR Number, CR date, Subsidiary details, Sector etc.)
  • Financial information (annual value of supplies, expenses, imports and exports)
  • Registrant details (Name, identification number, DOB, job title etc.)
  • Documentation (commercial registration certificate, customs registration certificate, audited financial statements, copy of registrant ID, etc.)
  • 3. The taxpayer submits the profile creation request. This NBR profile can be created online using the following link.
    4. If taxpayer’s NBR profile is approved, they will be provided with login details to access the registration form.
    5. The registration form can be completed in a “single click”. This registration form can be accessed using the following link.
    6. Once the submission is reviewed and approved by NBR, The VAT certificate will be available on the taxpayer’s NBR profile.

    Which businesses should register?

    Registration will follow a phased process whereby companies within specific annual supply brackets are required to register by specific dates.

    Mandatory Registration

  • All taxable persons generating or expected to generate more than BHD 5,000,000 in annual supplies of goods and services are legally required to register for VAT by December 20th, 2018.
  • All taxable persons generating or expected to generate between BHD 500,000 and BHD 5,000,000 in annual supplies are required to register by June 20th, 2019.
  • All taxable persons generating or expected to generate between BHD 37,500 (mandatory threshold) and BHD 500,000 in annual supplies are required to register by December 20th, 2019.
  • VAT registration phasing and thresholds

    Voluntary Registration
    All entities generating over BHD 18,750 in annual supplies are eligible for voluntary registration.

    Registration of Non-Residents in Bahrain

    Non-Residents (with no fixed place of business1 or fixed establishment2) are required to register for VAT within 30 days from the first taxable supply to non-taxable persons in Bahrain, regardless of the thresholds mentioned above.

    Non-Residents (with no fixed place of business1 or fixed establishment2) supplying goods and services to taxable persons in Bahrain, are not required to register. In turn, the taxable persons in Bahrain receiving those goods and services have to report the VAT due under the reverse charge mechanism3 in their VAT return.

    Non-Resident taxable persons can apply for registration with the NBR either directly or by appointing a Tax Representative to act on their behalf.

    The NBR reserves the right to request and obtain necessary documentation from the taxable entity to prove that the above requirements are met.