Registration

Bahrain VAT Registration

A Person carrying out an Economic Activity independently for the purpose of generating income and exceeded the specified taxable supplies limit, has to register for Tax purposes in accordance with the provisions of this Law. The calendar year starting 1 January 2019 is considered as a transitional year for VAT purposes. In this respect, the requirements to be registered for VAT from 1 January 2019 (mandatory
registration) have been defined as follows:

registration

  • Annual Supplies = Taxable supplies + Deemed supplies + Imports + Related party supplies

VAT returns filing due dates

A Taxable Person shall submit to the Bureau a Tax Return for each Tax Period no later than the last day of the month following the end of the Tax Period. The tax periods for transitional period and steady state are given below:

vat return

  • Persons registered in between Jan to June 2019, the first tax period will be from date of registration to June 30th 2019. From July, quarterly return has to be filed
  • Persons registered in between July to Sept 2019, first tax period will be from date of registration to Sept 30th 2019. From Oct, quarterly return has to be filed.
  • Persons registered in between Oct to Dec 2019, first tax period will be from date of registration to Dec 31th 2019.

The VAT Return Form is the official document summarizing for a given tax period, the total output tax due and the total input tax recoverable. The form is the same, whether you are subject to quarterly tax periods or monthly ones. VAT Return Form is shown below:

 

Implications

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Entities over
BD 5M
Entities over
BD 500k
Entities over
BD 37.5k
Entities over BD
18.75k /Voluntary
Very little time for preparation – Structure, Process, Systems and Training/Communication to be done by 1st Jan 2019
Registration by 20th Dec 2018
6 months time for preparation – Structure, Process, Systems and Training/Communication to be done by 1st Jul 2019
Registration by 20th Jun 2019
One year time for preparation – Structure, Process, Systems and Training/Communication to be done by 1st Jan 2020
Registration by 20th Dec 2019
Can register at any time on Voluntary basis. This would primarily be to claim input tax credit where it is substantial.
1st Return filing by 30th April 2019, subsequent returns on quarterly basis for 2019.
Monthly returns from 2020 onwards
1st Return filing by 31st October 2019, subsequent returns on quarterly basis for 2019.
2020 – Monthly returns for over BD 3M supplies, Others will be Quarterly returns.
1st Return filing by 30th April 2020, subsequent returns on quarterly basis 1st Return filing would depend on when the entity would register, subsequent returns on quarterly basis
VAT to be charged from 1st Jan 2019.
Input tax credit can be taken for Taxable supplies related
VAT to be charged from 1st Jul 2019.
Input tax credit can be taken for Taxable supplies related.
Also Input tax can be taken in first return for VAT paid prior to Registration date subject to certain conditions.
VAT to be charged from 1st Jan 2020.
Input tax credit can be taken for Taxable supplies related.
Also Input tax can be taken in first return for VAT paid prior to Registration date subject to certain conditions.
VAT to be charged from date of registration.
Input tax credit can be taken for Taxable supplies related.
Also Input tax can be taken in first return for VAT paid prior to Registration date subject to certain conditions.