Announcements

NBR releases Updated VAT Registration Guide

date: 20221122

Organized By: National Bureau for Revenue

External URL: https://www.nbr.gov.bh/publications/view/VAT_Registration_guide

Dubai October 22, 2022:

The National Bureau for Revenue (NBR) releases a VAT Registration Guide (Updated in October 2022). The document provides guidance on registering for VAT in the Kingdom of Bahrain (Bahrain).

For your information, VAT was introduced in Bahrain since January 1, 2019 with a standard rate of VAT of 5 %. With effect from 1 January 2022, the standard rate of VAT was revised to 10 %. See the VAT Rate Change Transitional Provisions Guide on NBR’s website for an explanation of the transitional rules relevant to the change in rate.

The guide is intended to provide general information only, and contains the current views of the National Bureau for Revenue (NBR) on its subject matter. The document serves as a guideline only and is not a substitute for obtaining competent legal advice from a qualified professional. The main principles of the VAT system in the Kingdom of Bahrain are set out in the VAT General Guide issued by the NBR which is available on it’s website.

Bahrain: NBR releases FAQS on Digital Tax Stamps

date: 20221112

Organized By: Bahrain’s National Bureau of Revenue (NBR)

External URL: https://www.nbr.gov.bh/excise_faqs/4

Manama November 12, 2022:

Following UAE Federal Tax Authority’s footsteps, Bahrain’s National Bureau for Revenue announced the introduction of Digital Tax Stamps on Excise Goods starting from July 17, 2022 (extended from May 15, 2022) for imported Cigarettes, and retailed Cigarettes starting October 16, 2022 (extended from August 14, 2022)

The digital tax stamp system is a regulatory system that aims to track excise goods from the manufacturing stage to the goods being put into the local market for sale/consumption. Under this system, a dedicated digital stamp containing security features and codes is placed in order to prevent the circulation of non-original excise goods in the region.

Click here to read the FAQS.

Bahrain: NBR updates Excise Goods List

date: 20221102

Organized By: NBR

External URL: https://www.nbr.gov.bh/publications/view/excise_goods_list

Manama November 2, 2022:

The National Bureau for Revenue (NBR) has recently announced the updation of their excise goods list available on the NBR portal.

Click here to view the new excise goods list.

NBR: October 16 marks Application of Last Phase of DTS in Bahrain

date: 20221012

Organized By: NBR

External URL: https://www.nbr.gov.bh/releases/144

Manama October 12, 2022:

The National Revenue Authority (NBR) confirmed that October 16, 2022 marks the last phase of application of the distinctive mark system (digital stamps) on cigarette products. The decision was implemented based on decision No. 3 of 2022 of the CEO of the National Revenue Authority, where all cigarette products available for sale must be mandatorily marked with digital tags for trading, sourcing, or holding in local markets.

The agency called on all importers and traders in the local markets to deal in appropriate quantities and avoid storing large quantities of cigarettes that do not bear digital stamps. This was in order to clear the stock before the last stage and prepare for the ban of sale, circulation, possession or supply of cigarettes without stamps.

It is worth noting that the digital stamp system aims to track the movement of selective excise related goods from the manufacturing stage to the point of sale for consumption. The system helps combat the smuggling of goods and illegal trade and also helps protect consumers from poor quality and counterfeit products alike, while ensuring effective collection of tax proceeds by the government.

Read more.

Bahrain: National Revenue Authority prepares for Implementation of Digital Stamps

date: 20220907

Organized By: NBR

External URL: https://www.nbr.gov.bh/releases/142

Manama September 7, 2022:

The National Revenue Authority confirmed that as of October 16, 2022, the distinctive mark system of Digital Stamps will be applied to cigarette products in the country. This decision is implemented in line with the directives of the CEO of the National Revenue Authority, where all cigarette products available for sale must be marked with the stamp for trading in the local market.

The Authority called on all importers and traders in the region to deal in appropriate quantities and not to store large quantities of cigarettes that do not bear digital stamps, so that the stock will be cleared before October 16, 2022.

This directive will help them prepare for the ban on the sale, circulation, possession and supply of cigarettes that do not bear stamps. After the commencement of the digitization phase, any product in the supply chain that isn’t digitally stamped will have to be either destroyed or moved outside the territory of the Kingdom to avoid issues with the law for non-adherence. Penalties can range from administrative fines to cases for Public Prosecution.

Read more.

Bahrain: The National Bureau of Revenue (NBR) updates list of Excise Goods

date: 20220902

Organized By: NBR

External URL: http://www.allaboutvat.com/wp-content/uploads/قائمة-السلع-الانتقائية.pdf

Manama September 2, 2022:

The National Bureau of Revenue (NBR) updated the selective list of goods subject to excise tax as a continuation of the recent excise tax developments.

Kindly click here to view the entire updated list of goods subject to excise tax.

Bahrain: Legal Action take against 18 Tax Violators

date: 20220526

Organized By: News of Bahrain

External URL: https://www.newsofbahrain.com/bahrain/81376.html

Manama May 26, 2022:

The Ministry of Industry in cooperation with the National Bureau of Revenue (NBR) began inspections in the city to trace down tax violators early this year. Inspections were carried out in nearly early 40 trading outlets across Bahrain to ensure stringent compliance with the readjusted VAT rules. The retail outlets found guilty of tax evasion are facing fines and jail terms.

Eighteen trading establishments are facing fines of up to 10,000 BD for having violated the VAT laws in the region. The lawbreakers can also be jailed for five years.

The ministry and NBR stressed the importance of complying with readjusted VAT regulations and urged customers to report defaulters on their hotline 80008001 or send an email to vat@nbr.gov.bh

Read more.

NBR's Inspection Campaigns detect 29 Violations and close 2 Stores in the Kingdom

date: 20220319

Organized By: NBR

External URL: https://www.nbr.gov.bh/releases/116

Manama- March 19, 2022:

Since the roll-out of the law to double VAT in January 2022, the Ministry of Industry, Commerce and Tourism, in cooperation with the National Revenue Authority(NBR), conducted inspection campaigns on shops and commercial establishments. As many as 40 shops and commercial establishments were inspected in the Kingdom to check their compliance. The main aim of the inspections was to spread awareness of the mechanisms to be followed to apply VAT in its modified basic proportion and ensure the interest of consumers.

The inspection campaigns detected around 29 violations that require the imposition of administrative fines that may reach 10,000 Bahraini Dinars in accordance with the law and also necessitated the closure of two precautionary stores. NBR is geared to take legal measures against the violating facilities, and refer those proven of an evasion crime to the authorities. Penalties could even reach up to five years imprisonment and a fine equivalent to three times the evaded added value.

Citizens and residents who come across any violation of the VAT law can report their complaints to the authorities by dialing 80008001 24/7 or sending an email to vat@nbr.gov.bh

Read more.

Bahrain Tax Authority releases VAT return guidance

date: 20220204

Organized By: Bahrain’s National Bureau of Revenue (NBR)

Manama – February 4, 2022:

From January 1 2022, the standard rate of value-added tax (VAT) in Bahrain increased to 10 percent from the previous rate of 5 percent.

Under the new transitional rule, supplies made during 2022 pursuant to a contract signed on or before 23 December 2021 are subject to VAT at a rate of 5 percent until the contract expires, is renewed or is amended (whichever is earliest).

For further clarifications the National Bureau for Revenue (NBR) has released a detailed manual in English for taxpayers:

For addressing any of your queries related to the new manual, get in touch out tax experts.

Bahrain Publishes Law Increasing VAT Rate to 10% from 2022

date: 20220104

Organized By: Government of Bahrain

External URL: https://www.lloc.gov.bh/HTM/K3321.htm

Manama- January 04, 2022:

Bahrain has published Law 33 of 2021 in the Official Gazette, which provides for the increase in the standard VAT rate from 5 percent to 10 percent with effect from January 1, 2022.

Article 4 of the law includes a transitional provision for supplies under a contract concluded prior to 1 January 2022. This includes that the 5% rate will continue to apply for such contracted supplies until the contract expires, is amended or is renewed or lapsed post a year after the law is effective, whichever is earlier.

NBR releases a set of FAQS relating to VAT increase

date: 20220103

Organized By: NBR

External URL: https://www.nbr.gov.bh/vat_faqs/17

Manama- January 3, 2022:

NBR (National Bureau for Revenue) has released a set of FAQS on the transitional measures related to the VAT rate increase in Bahrain. The basic percentage of value-added tax has been changed from 5 percent to 10 percent effective from January 1, 2022.

Supplies of goods or services made on or after January 1, 2022, will be subject to 10% value-added unless the supply is zero-rated, exempt or falls within the transitional provisions set out below.

Bahrain Shura Council ratifies Doubling of VAT

date: 20211223

Organized By: News of Bahrain

External URL: https://www.newsofbahrain.com/bahrain/77327.html

Manama- December 23, 2021:

Bahrain Shura Council, the upper house of the National Assembly, approves the draft law to double VAT to 10 percent in the country.

The Gulf’s smallest economy is seeking ways to cut spending and bring its budget back to balance in 2024.

Besides approving the VAT bill, MPs in Bahrain approved increasing social welfare and support allowance by 10 percent. Under the new social welfare system to be implemented from January 1, a low-income Bahraini would receive BD77 monthly, a couple would receive BD132 up from the current BD120, and each child BD25 (unchanged) but with the BD150 cap removed for the total given to a family.

Read more.

Bahrain to raise VAT to 10% by 2022

date: 20211209

Organized By: Khaleej Times

External URL: https://www.khaleejtimes.com/economy/bahrain-to-double-value-added-tax-from-5-to-10

Manama- December 9, 2021:

The Gulf’s smallest economy Bahrain has announced the doubling of value-added tax (VAT) to 10 percent from 5 percent in 2022. The reform is part of its plans to fix the Gulf state’s finances.

The VAT increase likely to start next year could contribute receipts of about 3 percent of the gross domestic product in the next few years, up from about 1.7 percent this year, a rating agency has estimated.

“The successful approval of the VAT increase by parliament is a critical milestone within our economic recovery plans and our aim of achieving a balanced budget by 2024,” the ministry of finance said.

Saudi Arabia tripled its VAT rate to 15 percent last year to bolster state revenue when oil prices slumped. The UAE and Oman imposed a 5 percent VAT under a common 2018 framework by the GCC. Kuwait and Qatar have yet to implement the tax.

View more

Bahrain to double VAT rate to 10%

date: 20211005

Organized By: Gulf News

External URL: https://gulfnews.com/business/bahrain-to-hike-vat-after-saudi-in-a-push-to-cut-deficit-1.82558380

Bahrain- October 5, 2021:

The Government of Bahrain is contemplating to double its rate of value-added tax (VAT) to 10 percent, in an effort to curb its large budget deficit and boost state revenue. The Gulf’s smallest economy is seeking ways to cut spending and bring its budget back into balance by 2024, an official close to the government said.

However, it’s still isn’t very clear when the higher VAT rate will be implemented though some news sources cite with effect from January 1, 2022.

This will be the Gulf’s second highest rate after Saudi Arabia tripled its VAT rate to 15 percent last year to bolster state revenue when oil prices slumped during Covid-19. The United Arab Emirates and Oman imposed a 5 percent VAT under a common 2018 framework by the six-nation GCC Council. Kuwait and Qatar are yet to implement the tax.

Click here to view more.

Bahrain: NBR releases guide on VAT Agent / VAT representative

date: 20210506

Organized By: The National Bureau for Revenue (NBR) in Bahrain

External URL: https://www.nbr.gov.bh/publications/view/VAT_Agent_VAT_Representative_Guide

Bahrain- May 6, 2021:

National Bureau for Revenue (NBR) in Bahrain published a guide in April 2021 on VAT agent or VAT representative.

A VAT agent is a person who is authorized by the NBR to act as an agent on behalf of a VAT payer in his name and on his behalf in relation to the VAT payer’s compliance obligations. It is a voluntary appointment by the tax payer subject to the agent being authorized by NBR.

Non-resident VAT payers who are obliged to register for VAT in Bahrain have the option to appoint a VAT representative. A VAT representative replaces the VAT payer and becomes responsible for all the VAT payer’s obligations towards the NBR.

The VAT Agent / VAT Representative Guide provides guidance and further clarification to those who would like to become a VAT Agent or Representative in Bahrain and the the criteria that must be met. Any person who is interested in becoming a VAT agent or VAT representative should go through this Guide to understand the conditions and the procedure that must be followed.

The guide provides an overview of

  • The requirements for obtaining NBR’s approval for getting registered as VAT agent/representative.
  • Rules and procedures for VAT payer to appoint a VAT agent/representative.

For any queries reach out to our tax experts.

stc Bahrain-AFS partner for next generation payment solutions

date: 20210225

Organized By: Gulf Digital News

External URL: https://www.gdnonline.com/Details/937093/stc-Bahrain-AFS-in-deal-for-next-generation-payment-solutions

Bahrain- February 25, 2021:

stc Bahrain, a digital enabler and Arab Financial Services (AFS), MEA region’s digital payments and financial technology solutions provider, have partnered to launch FinTech payment solutions for both retail SMEs and customers across the Kingdom of Bahrain. The partnership will see stc Bahrain leverage AFS’ VAT-enabled payment tools to roll out all-in-one fully integrated stc Tajer point-of-sale (PoS) solution.

Powered by AFS, the PoS solution provides the flexibility to process payments, print receipts, accept online orders while lowering infrastructure investments, minimizing human errors and making transaction easier.

The partnership expands the stc pay network, with AFS said to be becoming the first acquirer in Bahrain to offer stc pay acceptance across their network of smart Android-based, integrated PoS (point-of-sale) terminals. Merchants will now be enabled with QR contactless payments and added to the stc pay portfolio.

With a VAT-enabled integrated payment solution developed by AFS, stc Bahrain will be supporting retail companies, pharmacies, restaurants, cafes, salons, gyms with the PoS solution, and would streamline the financial transaction processes into one system.

Bahrain: Attorney General establishes Tax Evasion Crimes Unit

date: 20210224

Organized By: Bahrain News Agency

External URL: https://www.bna.bh/en/AttorneyGeneralestablishesTaxEvasionCrimesUnit.aspx?cms=q8FmFJgiscL2fwIzON1%2BDrsYCsGSsEW%2F9XQ6M4wcu%2FA%3D

Bahrain- February 24, 2021:

The Attorney-General has issued a decree establishing a specialized unit called “Tax Evasion Crimes Unit”.

Affiliated with the Financial Crimes and Money Laundering Prosecution, the new unit will investigate the crimes stipulated in the Value Added Tax Law No. (48) of 2018.

Financial Crimes and Money Laundering Prosecution Advocate Chancellor Nayef Yusef Mahmoud said that the establishment of this unit aims to reinforce the executive procedures regarding the application of the provisions of the law to tackle the cases of tax evasion. The unit is set up to probe such types of crimes and speed up the investigation of the reports related to the violation of the provisions of this law, in line with the requirements of the law for the urgent consideration and referral to the courts.
Click here to read more…

NBR releases updated VAT Imports and Exports guide

date: 20210223

Organized By: Bahrain’s National Bureau of Revenue (NBR)

Bahrain- February 23, 2021:

Bahrain’s National Bureau of Revenue (NBR) has published an updated version (1.2) of VAT Imports and Exports guide on 4th February, 2021.

The revised version clarifies the VAT implication regarding adjustment in the value of goods imported in the Kingdom of Bahrain.

Click here to view the Full Guide ( Version 1.2)

VAT registration call for BD 18,750–500,000 generating entities

date: 20190903

Organized By: National Bureau of Bahrain

External URL: https://www.nbr.gov.bh/releases/57

The National Bureau for Revenue (NBR) highlighted that the VAT registration process is open for entities generating or expected to generate between BD 18,750 and BD 500,000 in annual vatable supplies.

Concerned entities that wish to register early for VAT with the NBR will have the option of choosing the date to start implementing VAT until the end of the grace period.  The NBR stressed that collaboration and raising awareness on technical and procedural aspects of VAT are of utmost importance to ensuring the success of the VAT application process.

The NBR noted the positive cooperation provided by businesses regarding the proper application of VAT, adding that more than 4500 entities have registered for VAT since its launch within the Kingdom on 1 January 2019.

 

For further information, please contact the Call Center on 80008001 or email vat@nbr.gov.bh, in addition to leveraging the information available on NBR’s website (www.nbr.gov.bh), Twitter, Instagram and YouTube channel.

Tally Solutions Hosts ‘Bahrain VAT Summit’ to Discuss VAT Implementation and Compliance in the Next Half Year of 2019

date: 20190807

External URL: https://www.albawaba.com/business/pr/tally-solutions-hosts-%E2%80%98bahrain-vat-summit%E2%80%99-discuss-vat-implementation-and-compliance

Tally Solutions, a leading international accounting and compliance software provider, recently hosted a summit on value-added tax (VAT) in Bahrain as part of its ongoing efforts to raise awareness of businesses on the new taxation system in the country.

The recently concluded ‘Bahrain VAT Summit’ at the Sheraton Bahrain Hotel featured renowned VAT and technology experts, who shed light on the changes that had taken place in the country six months after the implementation of the VAT law. They also tackled the proposed steps that could be taken in the remaining half of 2019 to ensure correct and timely VAT compliance and implementation.

Guest speaker Manu Nair, CEO of the Emirates Chartered Accountants Groups, discussed the key reforms rolled out at the national level during the first 180 days of VAT implementation and their subsequent business impact. Further, Nair highlighted the expectations in the next 180 days of VAT in the country to help companies prepare better.

The attendees consisted of VAT-registered businesses with queries around the new law; companies which were planning to voluntarily register; and enterprises with questions about the registration requirements for the second and third phases of VAT deployment.

NBR holds two consecutive VAT workshops

date: 20190723

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/55

The National Bureau for Revenue (NBR) held two consecutive interactive VAT workshops to recap general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 210 attendees representing 125 entities were given the opportunity to visit a unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.Today’s workshop is a continuation of a series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sector in order to increase businesses’ awareness of VAT return filing procedures ahead of deadlines.

NBR holds two consecutive VAT workshops

date: 20190729

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/56

The National Bureau for Revenue (NBR) held two consecutive interactive VAT workshops to recap general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 138 attendees representing 85 entities were given the opportunity to visit a unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sector in order to increase businesses’ awareness of VAT return filing procedures ahead of deadlines.

99% of firms in Bahrain sign up for VAT

date: 20190819

Organized By: MANAMA

External URL: https://www.zawya.com/mena/en/economy/story/99_of_firms_in_Bahrain_sign_up_for_VAT-SNG_150314917/

The National Bureau for Revenue (NBR) has announced that 99 per cent of relevant enterprises operating in Bahrain have successfully registered with tax authorities.

The NBR identified 12 enterprises that are in violation of Bahrain’s VAT Law by not submitting a registration application, paying the tax by the deadline, or filing their return form.

 The bureau said they had been fined, warned of further action which may lead to the suspension of their Commercial Registration.

Bahrain’s economic growth to decelerate further in 2019

date: 20190725

Organized By: AMEinfo Staff

External URL: https://www.ameinfo.com/industry/finance/bahrains-economic-growth-decelerates-2019

The economic outlook for Bahrain’s economy remains clouded by persistent weakness in government finances, evident by significant fiscal deficits and rising public debt levels, large external financing needs, a general slowdown in non-oil activity and limited prospects for oil sector growth.

According to ICAEW’s latest Economic Insight report, economic growth in Bahrain more than halved last year, from 3.7% in 2017 to 1.8% in 2018, with further deceleration seen in 2019 to 1.6% amid a major drive to overhaul government finances, which include spending cuts, new taxes and other fiscal consolidation measures.

NBR holds two consecutive VAT workshops

date: 20190723

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/55

The National Bureau for Revenue (NBR) held two consecutive interactive VAT workshops to recap general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 210 attendees representing 125 entities were given the opportunity to visit a unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.Today’s workshop is a continuation of a series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sector in order to increase businesses’ awareness of VAT return filing procedures ahead of deadlines. 

Bahrain scraps fees on 200 government services

date: 20190702

External URL: https://www.arabianbusiness.com/politics-economics/423199-bahrain-scraps-fees-on-200-government-services

Bahrain has decided to scrap fees on up to 200 government services, it was announced in a cabinet meeting on Monday, according to a report by the Gulf Daily News website.

While the list of services which would now be free was not named in the report or by the cabinet, it was also revealed that an additional 220 government services will be exempted from value-added taxes for Bahraini nationals.

The decision means a total of 1,620 services will now be VAT-exempt for Bahraini citizens.

The decision was ordered by Prime Minister Prince Khalifa bin Salman Al Khalifa following King Hamad’s order to review all tax measures.

VAT was introduced in Bahrain in January 2019 in a bid to diversify and increase government revenues.

 

NBR holds an interactive workshop for professionals working in the real estate, construction, and manufacturing sectors

date: 20190717

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/52

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the real estate, construction, and manufacturing sectors to recap general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 189 representatives from 113 entities were given the opportunity to visit a unique interactive demo-center that provides an innovative learning experience in order to ensure effective implementation of VAT.

Today’s workshop is a continuation of a series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sector to increase awareness of VAT return filing procedures ahead of deadlines.

NBR holds an interactive VAT workshop

date: 20190703

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/51

The National Bureau for Revenue (NBR) held an interactive VAT workshop, during which general and sector-specific VAT concepts, including invoicing and filing, were recapped. Following a question-and-answer session, 75 attendees representing 54 entities were given the opportunity to visit a unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sector in order to increase businesses’ awareness of VAT return filing procedures ahead of deadlines.

NBR holds an interactive workshop for representatives working in the service sector

date: 20190620

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/50

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the service sector, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 118 representatives from 74 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June 20th, 2019.

2nd phase of VAT registration deadline

date: 20190615

VAT Registration

VAT registration is the process through which a subject to VAT entity requests to be enrolled for VAT. Upon registration, a dedicated VAT account number will be assigned to the entity.

Mandatory Registration

  1. All entities subject to VAT 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.
  2. All entities subject to VAT 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.
  3. All entities subject to VAT 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.

Process for registration

  1. To register for VAT, VAT payers must first create NBR profile.
  2. The VAT payer is required to populate the NBR form and specify their information including:
    • VAT payer 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 VAT payer submits the profile creation request. This NBR profile can be created online.
  4. If VAT payer’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 online.
  6. Once the submission is reviewed and approved by NBR, The VAT certificate will be available on the VAT payer’s NBR profile.

Pre-VAT rush to buy gold, second phase to be implemented from July 1

date: 20190528

Organized By: Sandeep Singh Grewal

External URL: http://www.gdnonline.com/Details/541519/Pre-VAT-rush-to-buy-gold,-second-phase-to-be-implemented-from-July-1

GOLD appears to have regained its shine as jewellers in Bahrain are reporting a surge in demand weeks before the rollout of the second phase of a key levy. The second phase of Value Added Tax (VAT) will be implemented from July 1 .

Bahrain hosts VAT workshop for construction professionals

date: 20190525

Organized By: Ankit Ojha

External URL: https://www.constructionweekonline.com/business/182955-bahrain-hosts-vat-workshop-for-construction-professionals

National Bureau for Revenue’s workshop aimed at smooth registration of companies earning $1.3-13m

Bahrain’s National Bureau for Revenue, a part of the kingdom’s government, recently held a value-added tax (VAT) workshop for construction professionals to boost clarity in the sector and support their registration for VAT, which Bahrain started levying in January 2019.

The session saw the bureau providing 45 representatives from 29 vendors a rundown on general and sector-specific concepts surrounding VAT, such as invoicing and filing.

The workshop was followed by a Q&A session, and a visit to an interactive demo center that offers a more hands-on understanding of VAT.

State news agency, BNA, reported that the session was part of National Bureau of Revenue’s goal to work as a platform for all public- and private-sector stakeholders to ensure streamlined company registration by June of firms with an annual income of $1.3-13m (BHD500,000-5,000,000).

VAT was made mandatory for companies in the UAE and Saudi Arabia last year, with Bahrain following suit in 2019.

NBR holds a workshop for professionals working in audit firms

date: 20190508

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/48

The National Bureau for Revenue (NBR) held a workshop primarily aimed at increasing professional auditors’ VAT awareness to better equip them with the knowledge they need to provide accurate VAT advisory and audit services.

A total of 57 professionals attended the workshop that provided a detailed presentation of the Kingdom’s VAT regulatory and procedural aspects, including registration requirements, filing requirements, and mechanisms for dealing with VAT-payers to better meet their needs.

Today’s workshop ensures the smooth implementation of VAT, particularly in regards to companies with an annual supply of BHD 500,000 to BHD 5,000,000 that are expected to complete their registration by June.

NBR holds an interactive workshop for representatives working in the retail and wholesale sectors

date: 20190506

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/47

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the retail and wholesale sectors, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 59 representatives from 38 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organized by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

NBR holds interactive workshop for retail and wholesale sectors representatives

date: 20190422

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/46

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the retail and wholesale sectors, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 48 representatives from 36 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organized by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

 

Attendees can now register for VAT workshops

date: 20190421

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/45

The National Bureau for Revenue (NBR) today introduced a new electronic service to allow VAT payers to register their interest to attend upcoming VAT workshops by submitting a simple form at https://www.nbr.gov.bh/workshop_registration.

The workshops will introduce attendees to key VAT concepts, including invoicing and filing, as well as providing them with the opportunity to visit the interactive demo-center. The registration feature builds on Bahrain’s intensive efforts to increase all VAT payers’ solid understanding of key VAT concepts in addition to ensuring the smooth registration of companies with annual supplies between BHD 500,000 and BHD 5,000,000 by June.

Financial Services VAT Guide

date: 20190415

This document sets out some of the general principles of Value Added Tax (VAT) in the Kingdom of Bahrain (Bahrain) specifically relevant to the financial services and the insurance sectors. The main aim of this document is to provide the reader with:

An overview of the VAT rules and procedures applicable to the financial services and the insurance sectors in Bahrain and, if required, how to comply with them the necessary background and guidance to help you to determine how a supply is treated for VAT purposes.

Read more..

VAT Healthcare Guide

date: 20190415

An overview of the VAT rules and procedures in relation to the healthcare sector in Bahrain and, if required, how to comply with them the necessary background and guidance to help you to determine how a supply is treated
for VAT purposes.

Read more..

VAT Treatment of Education Services

date: 20190415

The supply of educational services and  related goods and services by kindergartens, pre-primary, primary, secondary and higher education institutions is subject to the zero-rate.

In order for the zero-rate to apply:

The school or educational institution must be licensed by the Ministry of Education in Bahrain or be under its supervision, and Supplies must be provided directly to a student who is enrolled in that school or institution.

Certain educational services are not subject to the zero-rate (and will be subject to the 5% rate), including:

Professional education; and Vocational training, unless such  vocational training is provided by a polytechnic educational institution  which is licensed by the Ministry of Education in Bahrain.

 

Read more..

 

NBR announces the opening of a new VAT refund desk for visitors at Bahrain International Airport

date: 20190317

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/39

Bahrain’s National Bureau for Revenue (NBR) today announced the launch of a VAT refund desk at the Bahrain International Airport. Launched in collaboration between the Bahrain Airport Company and Planet, the new desk offers VAT refund solutions for tourists and non-residents visiting the Kingdom of Bahrain as well as citizens residing abroad.

The VAT refund desk uses an integrated system that allows VAT refund claims on local purchases from over 300 retail outlets across the Kingdom.

The VAT refund desk represents one of many measures the Kingdom is implementing to expand regional and international tourist base, while increasing market competitiveness and expanding growth across Bahrain’s established tourism sector.

Commenting on the announcement, the Chief Commercial Officer of the Bahrain Airport Company, Ayman Zainal said:

“BAC is pleased to support the Ministry of Finance and National Economy and the National Bureau for Revenue in Bahrain with this important function. Two dedicated stands will be set up at the airport where tourists can avail hassle-free VAT refunds on their shopping.”

The Country Manager of Planet, Eyad Al Kourdi, also welcomed the launch of the new desk saying:

“Planet is proud to be working closely with the National Bureau for Revenue and the Bahrain Airport Company to deliver a fast, efficient and state-of-the-art digital VAT refund scheme as the Kingdom of Bahrain’s tourism and retail sectors continue to grow and attract shoppers from across the world.”

The NBR also outlined the following steps for completing VAT refund submissions at the Bahrain International Airport:

Claimers are required to present their passports, entry visa permits, GCC National IDs, or residency permits for Bahraini nationals living abroad, when shopping VAT Free.

Claimers need to request VAT free tags, available at retail stores, upon completing their purchase. The tags can be attached to receipts, which will be validated along with purchased goods at the VAT refund desk during check out.

Refunds will be paid in cash or via a credit/ debit card account provided by the claimer.

NBR holds an interactive workshop for representatives working in the manufacturing sector

date: 20190410

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/44

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the manufacturing sector, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 46 representatives from 24 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organized by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

NBR holds an interactive workshop for representatives working in the construction sector

date: 20190401

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/43

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the construction sector, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 88 representatives from over 50 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organized by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

NBR holds interactive workshop for retail/wholesale sectors

date: 20190327

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/42

The National Bureau for Revenue (NBR) held another interactive VAT workshop for professionals in the retail and wholesale sectors, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a Q-and-A session, 90 representatives from 48 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BD 500,000 to BD 5,000,000 by June.

NBR holds an interactive workshop for representatives working

date: 20190401

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/43

The National Bureau for Revenue (NBR) held an interactive VAT workshop for professionals working in the construction sector, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, 88 representatives from over 50 vendors were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to ensure effective implementation of VAT.

Today’s workshop is a continuation of the series of workshops organized by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

Basic food products NOT subject to VAT

Bahrain publishes VAT guide on financial services

date: 20190331

Organized By: Staff Writer, Banker Middle East

External URL: https://www.zawya.com/mena/en/economy/story/Bahrain_publishes_VAT_guide_on_financial_services-SNG_141422748/

Bahrain’s National Bureau for Revenue stated that a 5% standard tax is applicable where the payment for the services is made by way of fees, commissions or commercial discount.

The Bahrain National Bureau for Revenue (NBR) has released the first edition of its Financial Services VAT guide (FSI VAT Guide) and Islamic finance products generally have the same VAT treatment as their conventional financial product counterpart.

NBR stated that a five per cent standard tax is applicable where the payment for the services is made by way of fees, commissions or commercial discount.

Additionally, tax exemption will be applied where the payment for the services is made by way of an implicit margin or spread, including interest.

VAT Digital Economy Guide

date: 20190404

Organized By: Mohammed Zafran

External URL: https://www.newsofbahrain.com/bahrain/52526.html

The National Bureau for Revenue (NBR) has published a guide that mainly focuses on educating the public on the VAT treatment of e-commerce and the VAT treatment of electronic services. ‘The VAT Digital Economy Guide’ aims to educate the public about the application of VAT on e-commerce and electronic services. The document sets out the general principles of Value Added Tax (VAT) in relation to the digital economy sector in the Kingdom.

The main aim of the document is to provide the reader with an overview of the VAT rules and procedures in the Kingdom in relation to the digital economy sector and how to comply with them if required. It also explains the necessary background and guidance to help determine how supply is treated for VAT purposes.

“This guide is intended to provide general information only and contains the current views of the National Bureau for Revenue (NBR) on its subject matter. “No responsibility is assumed for the VAT laws, rules or regulations in the Kingdom. “This guide is not a legally binding document and does not commit the National Bureau for Revenue or any taxpayer in respect of any transaction.

Read more..

VAT implementation in focus

date: 20190404

Organized By: MANAMA

External URL: http://www.gdnonline.com/Details/522760/VAT-implementation-in-focus

The Bahrain Chamber of Commerce and Industry (BCCI) represented by its finance, insurance and tax committee, and its technology committee held a workshop themed “Using technology in VAT implementation” at Beit Al Tijjar. The workshop, delivered by experts from KPMG Bahrain, discussed the legal and administrative framework of the tax, the sector-specific guidelines for VAT as per the National Bureau for Revenues, and the challenges of implementing the tax .

Early registration key to a smooth Bahrain VAT transition

date: 20190402

Organized By: Vikas Panchal

External URL: https://ameinfo.com/money/banking-finance/early-registration-key-to-a-smooth-bahrain-vat-transition/

Bahrain introduced a 5% value-added tax (VAT) in the Kingdom from January 1st, 2019.

The tax registration in the country is split across phases and requires businesses to enrol across each phase based on their threshold. As such, the larger businesses with annual supplies exceeding BHD 5,000,000 ($13.25 million) are mandated to register in the first phase, whereas businesses with the annual supplies value exceeding BHD 500,000 ($1.32 million) are mandated to register in the second phase.

Similarly, businesses whose annual supplies exceeds BHD 37,500 ($99,375) are mandated to register in the third phase. In addition, voluntary VAT registration is available for businesses even if the annual supplies are less than the mandated registration threshold limit. While it is voluntary, and entrepreneurs can register if their annual supplies exceed BHD 18,750 ($49,687) benefits of registering under VAT are immense and it is recommended that businesses that have not yet enrolled, start immediately to assess the impact of tax on their operations.

Upon registering under VAT, businesses are given a VAT number which can be displayed on invoices, letterheads, websites and other forms of business stationery. While early registrations help businesses add VAT to the sale price of goods and services when they sell to commercial and non-commercial consumers, it can also help in claiming the Input VAT – a mechanism by which a VAT registered business can deduct input tax from the output tax for a period and remit the balance tax payable to the National Bureau for Revenue.

VAT is a simple process, and The National Bureau for Revenue (NBR) has introduced several knowledge and process guides to make registration seamless and accurate. As such, with the help of NBR, early registered businesses can prepare well in advance and ensure that the process is completed easily, eliminating the risk for unnecessary delays, and incorrect information, which may lead to hefty fines or rejection.

MCA is now a FTA approved Tax Agent

date: 20190327

MCA Management Consultants has qualified to represent clients to FTA in matters relating to VAT after earning the approval as a FTA accredited Tax Agent.

MCA has met the stringent conditions specified by the Federal Tax Authorities to attain this approval. The conditions safeguard the interest of registered VAT entities and ensure that VAT computation, filing and audit is as per the guidelines contained in the various statutes of the VAT law in UAE.

Real Estate guide for Bahrain

date: 20190317

Organized By: MCA Pyramid Consulting WLL

External URL: http://www.allaboutvat.com/wp-content/uploads/Real-Estate-update-17032019.pdf

Summary of VAT on Real Estate sale/Lease

ExemptStandard rated
  •  Sale/lease of  property
  •  Sale/lease land
  •  Labour accommodation
  •  Car parking for > a month
  •  Serviced accommodation  more than a year
  •   Hotel accommodation  and related   services
  •   Paid car parking for period < 1 month
  •   Non Exclusive serviced office space
  •   Function hall
  •   Management services, utilities,     telecommunications etc
  •   Signage and permissions
  •   Services charged separately
  •   Furnished apartments   with  tourism  licence
  •   Storage services
  •   Short term retail and promotional stands
  • No VAT on furniture, unless charged separately from accommodation.
  • VAT to be charged on services provided in addition to serviced space
  • VAT to be charged on provision of space for retails and promotional stands for < 1 month
  • Normal place of rules applicable for insurance of real estate property

 

Click here to know more

We must ensure smooth VAT implementation

date: 20190315

Organized By: Dr Abdelgadir Warsama

External URL: http://www.gdnonline.com/Details/509638/We-must-ensure-smooth-VAT-implementation

Bahrain being part of GCC, is obliged to comply and apply the VAT treaty which came to face and absorb some difficulties. First, it is better to mention that the new VAT is of certain features including, among other things, a small rate of five per cent compared with 17 to 20pc in developed countries including Germany, France and the UK. Also, the exemption of many essential products and services “zero rated” from the VAT. I believe, such strategy is intended due to the absence of taxation culture in the region.

This year, the implementation of VAT in Bahrain, is in progress but not free from obstacles. Including, some companies are yet to complete IT systems, train staff, comprehend the process, registration issues, VAT return process and confusion over tax invoices. Moreover, other related issues have started as consequence to VAT, namely prices increase to face VAT. Such points need time to settle and firm actions are required. By all means, costs rationalisation is needed and there should be regulations to supervise and control the market to escape adverse consequences due to VAT.

KPMG Organizes a Seminar on Tax Compliance and Reporting for Businesses in Bahrain

date: 20190317

Organized By: Press Release

External URL: https://www.albawaba.com/business/pr/kpmg-organizes-seminar-tax-compliance-and-reporting-businesses-bahrain-1266694

Approximately 200 key members from the business community in the Kingdom of Bahrain attended an exclusive seminar organized by KPMG in Bahrain for VAT registered and to-be registered businesses to discuss tax compliance and reporting obligations.  This in preparation for the first VAT return cycle coming up in April this year. VAT has now been live in the Kingdom of Bahrain for nearly three months and by latest 30 April 2019, VAT registered businesses will be required to submit their first VAT return to the National Bureau for Revenue (NBR).

 Philippe Norré, Partner and Head of Taxes and Corporate Services at KPMG in Bahrain was the keynote speaker and shared insights from his long experience in rolling out and leading KPMG’s Global Indirect Tax Compliance approach.  He explained and discussed the detailed requirements outlined by the Bahraini VAT legislative framework.  “Not only are VAT registered businesses required to submit correctly completed VAT returns and do by deadline together with any payment due, but the compliance and reporting obligations for VAT do require keeping a set of quality documents to support the numbers reported and allowing for an end-to-end reconciliation including with the General Ledger (purchase orders, contracts, invoices, import and export documentation, debt and credit notes and others). As further official guidance notes are issued by NBR a proper knowledge management process is required to keep fully abreast of all developments around VAT in Bahrain. ” He commented during the event.

Tourists to Bahrain will be offered VAT refunds through a VAT refund desk at the Bahrain International Airport.

date: 20190319

Organized By: Mohammed Zafran

External URL: https://www.newsofbahrain.com/bahrain/52179.html

Tourists to Bahrain will be offered VAT refunds through a VAT refund desk at the Bahrain International Airport. This comes as the Kingdom’s National Bureau for Revenue (NBR) announced the launch of a VAT refund desk at the Bahrain International Airport yesterday. The set up is in collaboration between the Bahrain Airport Company and international payment specialist Planet Payment. The NBR stated that the new desk will offer VAT refund solutions for tourists and non-residents visiting the Kingdom as well as citizens residing abroad. “The VAT refund desk uses an integrated system that allows VAT refund claims on local purchases from over 300 retail outlets across the Kingdom,” the NBR stated.

“The VAT refund desk represents one of many measures the Kingdom is implementing to expand regional and international tourist base, while increasing market competitiveness and expanding growth across Bahrain’s established tourism sector,” it added. Chief Commercial Officer of the Bahrain Airport Company, Ayman Zainal said, “The BAC is pleased to support the Ministry of Finance and National Economy and the National Bureau for Revenue in Bahrain with this important function. Two dedicated stands will be set up at the airport, where tourists can avail hassle-free VAT refunds on their shopping.” The Country Manager of Planet Payment, Eyad Al Kourdi, commented, saying, “Planet is proud to be working closely with the National Bureau for Revenue and the Bahrain Airport Company to deliver a fast, efficient and state-ofthe-art digital VAT refund scheme as the Kingdom’s tourism and retail sectors continue to grow and attract shoppers from across the world.” The NBR explained the VAT refund process stating, “Claimers are required to present their passports, entry visa permits, GCC National IDs, or residency permits for Bahraini nationals living abroad, when shopping VAT free”.

Read more..

Is Bahrain facing VAT implementation hurdles

date: 20190320

Organized By: Anup Oommen

External URL: https://ameinfo.com/money/banking-finance/is-bahrain-facing-vat-implementation-hurdles/

Saudi Arabia and the UAE led the way in January 2018 with the introduction of a 5 percent value-added tax (VAT) as part of the unified GCC VAT Agreement – and Bahrain followed suit in January 2019. This measure in Bahrain, however, could be facing some hiccups.

Value-added tax (VAT) is a type of consumption tax that is placed on the supply of goods and services. It takes into account the “value added” at every step of the supply chain. The GCC framework on VAT, which has been spurred by efforts toward tax transparency and the GCC’s diversification goals, gives sufficient leeway for member states to be flexible on VAT implementation in industries based on local contexts and specifications. Bahrain, for instance, has decided to exclude oil products from VAT, as part of its essential goods exclusion.

NBR holds workshops along with its first demo center to educate vendors

date: 20190225

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/32

The National Bureau for Revenue (NBR) held two workshops today for retail and wholesale vendors followed by an interactive demo center providing on-spot assistance and information regarding VAT, at the Ministry of Finance and National Economy.

The VAT demo center is designed to provide vendors with a live step-by-step guide on VAT readiness, and is part of the NBR’s efforts in ensuring the correct implementation of VAT within the Kingdom of Bahrain.

140 representatives from various retail and wholesale vendors attended two workshops that provided a general overview on VAT, sector specific content, invoicing and filing requirements, as well as a question and answer session, to ensure they are well informed on relevant VAT concepts.

The workshops were followed by access to the live demo center that provided an interactive experience on technicalities of VAT to ensure vendor readiness on VAT application.

The workshops and demo center are part of the NBR’s commitment to increase public and private stakeholders’ awareness and transparency regarding the treatment of the VAT across all sectors.

The NBR highlighted the importance of spreading awareness on VAT technicalities at this initial phase, given that companies with an annual revenue of BHD 500,000 to BHD 5,000,000 are set to register for VAT by June of this year.

NBR holds interactive workshops for the food, hospitality, communications and entertainment industries

date: 20190304

Organized By: MANAMA

External URL: https://www.nbr.gov.bh/releases/35

The National Bureau for Revenue (NBR) held two consecutive workshops primarily aimed at increasing the VAT awareness of professionals working in the food & hospitality and communications & entertainment industries.

The workshops attracted 150 representatives from 85 vendors, and recapped general and sector specific technical VAT concepts, invoicing and filing requirements, as well as a question and answer session.

Following the workshop, attendees visited the unique interactive demo-center that provides innovative learning experiences to assist vendors in implementing VAT.

The NBR will continue to organize workshops that provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

NBR holds interactive workshops

date: 20190306

Organized By: Manama

External URL: https://www.nbr.gov.bh/releases/34

The National Bureau for Revenue (NBR) held two consecutive VAT workshops for professionals working in the education, healthcare, service and utility industries, during which the NBR recapped general and sector-specific VAT concepts, including invoicing and filing.

Following a question-and-answer session, around 190 representatives from 100 companies and institutions were given the opportunity to visit the unique interactive demo-center that provides innovative learning experiences to maximize participants’ assimilation and implementation of the materials presented.

Today’s workshop is a continuation of the series of workshops organised by the NBR to provide an inclusive platform for all stakeholders from the public and private sectors to ensure the smooth registration of companies with an annual supply of BHD 500,000 to BHD 5,000,000 by June.

VAT challenges in spotlight at forum

date: 20190304

Organized By: MANAMA

External URL: http://www.gdnonline.com/Details/507804

Around 25 key officials from financial institutions in Bahrain attended an exclusive closed roundtable discussion organised by KPMG in Bahrain to discuss the challenges faced by the financial services sector following the formal introduction of Value Added Tax (VAT) in Bahrain. Philippe Norré, partner and head of indirect taxes at KPMG in Bahrain, was the moderator during the event and said “With their first VAT returns due latest by 30 April 2019, banks and other financial institutions still face lack of VAT treatment clarity around several typical financial offerings .

Bahrain cutting budget deficit

date: 20190303

Organized By: AW staff

External URL: https://thearabweekly.com/bahrain-cutting-budget-deficit

Bahrain recently quickened the pace of economic reforms by passing a package of laws, notably the introduction of a VAT and pension reforms.

The 5% VAT is one of the key commitments under the Gulf Finance programme. The agreement provides for the imposition of a VAT in all Gulf Cooperation Council countries during the current year.

The tax is to promote and diversify non-oil financial revenues. It comes after the introduction in December of a tax, ranging 50-100%, on tobacco and its derivatives, soft drinks and energy drinks.

IMF says VAT launch in Bahrain a 'significant step'

date: 20190307

Organized By: MOHAMMED ALSHAIKH

External URL: https://www.arabianbusiness.com/politics-economics/414919-imf-says-vat-launch-in-bahrain-significant-step

Economic activity in Bahrain was subdued in 2018 and is expected to remain at about 1.8% this year, says the International Monetary Fund.

Economic activity in Bahrain was subdued in 2018 and is expected to remain at about 1.8 percent this year, according to the International Monetary Fund (IMF).

The IMF described the introduction of value added tax (VAT) in January as “a particularly significant step”, as are plans for cost recovery in utilities and further means-tested subsidy reforms.

It added that the Fiscal Balance Program (FBP), accompanied by $10 billion in regional support, marks a major step in Bahrain’s reform agenda and has alleviated near-term financing constraints.

Professional services firm MCA expands to Bahrain ahead of VAT launch

date: 20181214

Organized By: Consultancy Middle East

External URL: https://www.consultancy-me.com/news/1643/professional-services-firm-mca-expands-to-bahrain-ahead-of-vat-launch

Indian-founded professional services firm MCA, which offers a broad range of services covering the spectrum of accountancy, audit and assurance, international taxation, and technology and business management consulting, has on the eve of the VAT roll-out in Bahrain expanded from its current bases in the UAE and Oman to launch a new office in the Kingdom – MCA Bahrain.

The new venture has been launched in partnership with fellow Dubai-based professional services firm Pyramid Specialized Management Consulting (to operate under the legal name MCA Pyramid Consulting WLL), and will offer services in taxation, governance, risk and compliance, transaction advisory, supply chain, corporate services and business strategy among other areas.

Founded in India in 2008 by current Chairman T. N. Manoharan, MCA launched its Dubai arm the following year and has since grown to include further offices in Abu Dhabi, Sharjah and Muscat with a team of more than 75 employees and an established regional client base upwards of 600 to date. The Middle East branch is led by Managing Director Mannem Hanumantha Kumar.

The launch in Bahrain has been timed to coincide with the local VAT roll-out, scheduled to be implemented locally in the Kingdom from the start of next year following its earlier introduction in Saudi Arabia and the Emirates (the remaining GCC have committed to follow), with MCA to offer its expertise on VAT impact assessment, implementation, registration and compliance.

“With introduction of VAT in Bahrain, the decision to expand and open a new office was a logical step in our business growth strategy and it will strengthen our comprehensive basket of service capabilities in the region,” Manoharan said at the launch ceremony. “Further, it would improve transparency and compliance in general and have a positive impact on country rating.”

Also in attendance at the launch party in Manama were MCA Bahrain founding partners Kumar and S Venkatesh (MCA managing partner) and Pyramid founder and managing director R Lakshmanan, a former auditor for KPMG in Bahrain who established Pyramid in 2014 to specialise in housing finance, real estate, Islamic finance, and strategic advisory among other areas.

“We are delighted to launch operations in Bahrain in the 10th year of MCA, UAE. With significant expertise developed from VAT implementation in the UAE, MCA Bahrain is better positioned to cater to demand for VAT related services,” said Venkatesh. Lakshmanan added; “We have made a long-term commitment to this market and delighted to launch in Business-Friendly Bahrain.”

Both Kumar and Venkatesh have both previously served as the Chairman of the Dubai Chapter of the Institute of Chartered Accountants of India (ICIA), a role also held over time by esteemed sector leaders such as Deloitte partner Abbas Ali Mirza, BDO Patel & Al Saleh founder Russi J Patel, and Group CEO (UAE and Oman) of Crowe Mac and Crowe Global board member James Mathew.

Meeting with Thattai Hindu Merchants Community (THMC)

date: 20181214

Meeting with members of Thattai Hindu Merchants Community (THMC), Kingdom of Bahrain and talk about implications of VAT on their businesses. A well organized and excellent event participation by Bhatia businessmen and businesswomen.

Bahrain gov't revenues 'out of sync' with non-oil growth - Minister

date: 20190227

Organized By: Arabian Business

External URL: https://www.arabianbusiness.com/politics-economics/414186-bahrain-government-revenues-out-of-sync-with-non-oil-economy-growth-says-finance-minister

Minister of Finance and National Economy says growth of Bahrain’s non-oil economy has averaged about 7.5% per year Bahrain gov’t revenues ‘out of sync’ with non-oil growth – minister Bahraini government revenues have not kept pace with the growth of the kingdom’s non-oil economy, according to Sheikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy.

Speaking at the GCC Financial Forum in Manama on Wednesday, Sheikh Salman said that non-oil economic growth in Bahrain has averaged approximately 7.5 percent per year.

“There’s a very positive story in the non-oil economic growth space,” he said. “What has been the issue is that non-oil revenues generated by the government have not kept up with that growth.”

Bahrain is currently in embarking on a plan to balance its budget by 2022, a key requirement of a $10 billion aid package funded by neighbouring states including the UAE and Saudi Arabia.

Last year, the country managed to trim its deficit by 35 percent to $3.5 billion. On Monday, Bahrain’s government approved a draft budget for the coming two years that projects a reduction of the deficit to $1.63 billion by 2020.

“As we continue on our deficit reduction measures, it will be of extreme importance that we look at the reduction of operating expenditure and an increase in revenues, non-oil revenues in particular, and that all our spending on subsidies is directed towards citizens,” Sheikh Salman said at the event.

Since VAT was introduced in Bahrain on January 1, Sheikh Salman said that more than 2,000 companies have registered already, more than two-thirds of which are below the legal threshold and have registered because of the positive incentives of refunds.

“It’s working well,” he said, noting that laws passed in Bahrain have zero-rated and exempted certain industries to ensure that citizens are protected from inflationary pressure and that economic growth continues.

Looking to the future, Sheikh Salman said he predicts that Bahrain’s logistics, tourism, financial and oil and gas sectors will continue to be the biggest drivers of economic growth.

Earlier in the week, the governor of Bahrain’s Central Bank said he expects the economy to grow at between 2.0 and 2.5 percent in 2019, similarly to last year.

Planet Payment to build Bahrain's tourist VAT refund scheme

date: 20190221

Organized By: Trade Arabia

External URL: http://tradearabia.com/news/TTN_351366.html

Rana Faqihi, the assistant undersecretary for Public Revenues Development, has signed a contract with international payment specialists Planet Payment to begin work on the VAT refund scheme for tourists, said a report.

Planet Payment has been chosen to oversee Bahrain’s VAT tourist refund scheme based on their knowledge and expertise in the field of international payment solutions

Planet has been operating for 30 years in 58 different countries regionally and worldwide, and currently operate the UAE’s VAT tourist refund scheme, it said.

The new refund system will be established and ready during this year, Faqihi noted.

Upon completion of the payment infrastructure, tourists visiting Bahrain will be able to claim refunds on a percentage of VAT paid on purchases during their visit to the kingdom. Reimbursements will be made through a fully integrated digital system that connects registered companies in the scheme to the points of exit at Bahrain International Airport, the report said.

Over 2,000 local and international vendors registered for the VAT

date: 20190218

Organized By: National Bureau of Taxation

External URL: https://www.nbr.gov.bh/releases/30

The National Bureau for Revenue (NBR) today announced that over 2,000 local and international vendors have registered for the VAT. The NBR recognized the private sector’s efforts exerted towards ensuring the proper implementation of the VAT, which includes registering for the VAT prior to levying the standard 5% tax.

Consumers are reminded that all registered vendors are legally required to display their VAT registration certificate that includes vendors’ Commercial Registration number and their VAT registration date, prior to levying the 5% VAT.

MOFNE signs contract with Planet Payment to build VAT tourist refund scheme

date: 20190220

Organized By: National Bureau of Revenue

External URL: https://www.nbr.gov.bh/releases/31

The Assistant Undersecretary of Development and Policy of Public Revenues, Rana Faqihi, today signed a contract with the international payment specialists Planet Payment, at the Ministry of Finance and National Economy. The contract has been signed to begin work on the tourist refund scheme for VAT paid by tourists during their stay in the Kingdom.

Planet Payment has been chosen to oversee Bahrain’s VAT tourist refund scheme based on their knowledge and expertise in the field of international payment solutions. Planet has been operating for 30 years in 58 different countries regionally and worldwide, and currently operate the UAE’s VAT tourist refund scheme.

Faqihi noted that the collaboration with Planet Payment is in line with the National Bureau for Revenue’s efforts in ensuring the correct implementation of VAT, and that the new refund system will be established and ready during this year.

Upon completion of the payment infrastructure, tourists visiting Bahrain will be able to claim refunds on a percentage of VAT paid on purchases during their visit to the Kingdom. Reimbursements will be made through a fully integrated digital system that connects registered companies in the scheme to the points of exit at Bahrain International Airport.

VAT reimbursements are a common practice introduced to increase visitor expenditure and boost the inflow of tourists as a stimulant for businesses’ competitiveness and overall economic growth.

Applying VAT on EWA bills ‘unconstitutional’

date: 20190206

Organized By: The Daily Tribune - News of Bahrain

External URL: http://www.newsofbahrain.com/bahrain/50956.html

A Bahraini lawyer has insisted that the recent decision by the Electricity and Water Authority (EWA) to apply Value Added Tax (VAT) on subscribers’ bills are unconstitutional, demanding immediate cancellation of the decision. This came as lawyer Mohammed Al Thawadi appeared before the High Administrative Court, which is examining a complaint lodged by him against the authority. The court said yesterday that it would issue its final verdict in the case on February 24.

In his statements, the lawyer asserted that the decision is unconstitutional, claiming that Articles 15 and 17 of the Constitution of the Kingdom stipulate that taxes should only be imposed through legislation. Mr. Al Thawadi also accused EWA of not adhering to the Unified GCCVAT Agreement.

“Article 29 did not stipulate the imposition of taxes on electricity supply services, but on the contrary, it gave each state the right to exempt some sectors in accordance with local law. “Additionally, Article 30 stipulates the exemption of government bodies from paying taxes, and therefore it is not permissible for the authority to collect taxes.” The lawyer’s last statement came after the authority denied the accusations during the previous hearing.

“The authority does not exercise its functions as sovereign and there is no monopoly of providing electricity and water supply services in the Kingdom,” the authority’s counsel had told the court. Further supporting his accusations against the authority, Mr. Al Thawadi said: “The authority’s claim that it does not operate in a sovereign manner and that there is nothing preventing competition with it from any other party in providing its services is incorrect.

The National Bureau for Revenue held 22 workshops on the treatment of VAT thus far

date: 20190204

Organized By: National Bureau for Revenue

External URL: https://www.nbr.gov.bh/releases/28

The National Bureau for Revenue (NBR) held a total of 22 workshop on the treatment of VAT across various sectors within the Kingdom. The workshops, which have begun since December 2018, address all of the various sectors’ VAT inquiries to ensure effective implementation of VAT.

The workshops targeted government and private sector entities, including entities in the banking and finance, real estate and construction, sale and retail, auditing, and education sectors. The NBR affirms its commitment to increase public and private stakeholders’ awareness and transparency regarding the treatment of the VAT across all sectors in addition to advancing public-private cooperation.

To ensure the success of the initial phase of the VAT implementation, the NBR will organize a further series of workshops to raise awareness on the technical and procedural aspects of VAT.

NBT distributes tax free logos to be added to goods and services that are not subject to VAT

date: 20190113

Organized By: National Bureau for Taxation

External URL: https://www.nbr.gov.bh/releases/20

The National Bureau for Taxation (NBT) today announced that a tax exemption logo (VAT FREE) will be distributed across various establishments in order to place the logo on goods and services that are not subject to VAT. This new measure builds on the government’s efforts to strengthen consumer protection and transparency, ensuring the correct implementation of VAT.

NBT stressed the importance of the various establishments to adopt this measure, making sure the logo is clear and visible to consumers. In this regard, the NBT further stressed the importance of clearly placing the VAT certificate of registration that entitles these entities to collect VAT on products and services that are subject to it.

NBT introduces a new system allowing consumers to verify vendors' VAT registration status

date: 20190113

Organized By: National Bureau for Taxation

External URL: https://www.nbr.gov.bh/releases/19

The National Bureau for Taxation (NBT) today introduced a new service that allows consumers to verify vendors’ VAT registration status through a search tool accessible on www.nbt.gov.bh.

The new system allows consumers to pull up vendors’ official registration records by searching for its VAT Registration Number, Commercial Registration Number and QR code.

This new service builds on the government’s efforts to strengthen consumer protection and transparency to further build on the success of the VAT.

The new service aims to facilitate the monitoring mechanisms during the VAT’s initial stage, and strengthen regulatory compliance.

Over 1,300 local and international vendors registered for the VAT

date: 20190116

Organized By: National Bureau for Taxation

External URL: https://www.nbr.gov.bh/releases/21

The National Bureau for Taxation (NBT) today announced that over 1,300 local and international vendors have registered for the Value Added Tax (VAT).

• In line with NBT’s efforts to expand VAT awareness, the Call Centre has efficiently responded to over 7,000 VAT related queries.

• Consumers are reminded that all registered vendors are legally required to display their VAT registration certificate, which includes vendors’ Commercial Registration number and their VAT registration date, prior to levying the 5% VAT.

• Consumers are also encouraged to verify taxpayers’ registration status through the recently introduced Taxpayer Lookup tool accessible on https://www.nbt.gov.bh/vat/tp/ms prior to paying the 5% VAT charge.

• The NBT continues to support consumers and investors with all aspect of the VAT, and invites all stakeholders to take advantage of the information available online (www.nbt.gov.bh) and on NBT’s social media accounts (@BahrainNBT) in addition to calling and emailing the Call Centre on 80080001 or vat@mof.gov.bh for further queries.

NBT holds VAT policies workshop

date: 20190117

Organized By: National Bureau Revenue

External URL: https://www.nbr.gov.bh/releases/22

The National Bureau for Taxation (NBT) today held a workshop aimed at increasing the awareness of registered government entities on VAT treatment and policies.

Today’s workshop attracted representatives from around 30 government entities, and provided a summary of core VAT concepts in addition to reviewing the VAT treatment and policies.

During the workshop, the NBT reminded civil servants of the Cabinet’s decision to ensure that 1,400 public services are not subject to 5% VAT, in line with the Royal Directives of HM the King to review the VAT application process during its trial period.

The NBT continues to hold an extensive series of workshops to facilitate the exchange of technical expertise and to assure the correct application of the VAT.

The National Bureau for Taxation holds a workshop for audit firms

date: 20190121

Organized By: National Bureau of Revenue

External URL: https://www.nbr.gov.bh/releases/23

The National Bureau for Taxation (NBT) today held a workshop primarily aimed at increasing professional auditors’ awareness in regards to the VAT procedures and legal framework in addition to equipping them with the knowledge they need to provide accurate VAT advisory and audit services.

The workshop attracted a number of representatives from various audit firms and addressed VAT-related inquires to ensure the use of best practice in auditing.

Today’s workshop is part of a series of workshops held by the NBT aimed at increasing public and private stakeholders’ awareness regarding VAT procedures and legal framework to achieve the highest level of compliance.

The NBT reminds taxable entities to refer to the list of audit firms that can aid in the implementation of VAT, which is available on the NBT’s website at the following link: https://www.nbt.gov.bh/licenced_acc.

NBT call centre responds to over 1,000 VAT queries

date: 20190108

Organized By: The Daily Tribune - News of Bahrain

External URL: http://www.newsofbahrain.com/bahrain/50016.html

The Call Centre has successfully responded to over 1,000 VAT related queries per day through its hotline (8008001) and by email (vat@mof.gov.bh) since the induction of the VAT on January 1, 2019. The National Bureau for Taxation (NBT) noted that the sudden influx of queries reflects consumers and investors’ eagerness to expand their VAT procedural and legal framework knowledge. As a result, the NBT will increase the total number of people employed in the Call Centre to advance its customer service standards and to equip the centre with the resources it needs to manage sudden influxes.

The NBT reiterated that all its communication channels are open to further queries related to the VAT procedural or legal framework. Citizens can contact the Call Centre on 80008001 or vat@mof.gov.bh in addition to taking advantage of the information available on NBT’s website (www.nbt.gov.bh), Instagram and Twitter (@NetworkNBT).

Meanwhile, Consumers in the Kingdom have been urged to ensure that they don’t overpay for goods and services to businesses who may take advantage of the current confusion in the market and charge extra bucks for goods and services. Taking advantage of the existing confusion in the market, certain businesses may swindle the customers by charging extra and many customers are worried over being cheated in the name of VAT.

Blockchain can help VAT

date: 20190104

Organized By: The Daily Tribune - News of Bahrain

External URL: http://www.newsofbahrain.com/bahrain/49923.html

Blockchain, the revolutionary technology which has been steadily gaining popularity in recent years can greatly help in the implementation and management of VAT, according to an expert While VAT is expected to boost revenue for the government, it comes with challenges related to TAX collection as well as issues related to companies that may try to evade taxes. Both issues can be addressed with the use of VAT, says a leading IT expert.

According to Yaqoob AlAwadhi, NGN International CEO, blockchain can help facilitate tax collection without added costs of intermediaries. He said that blockchain can cut VAT administration costs by eliminating the need for third-party intermediaries: agents, escrow, trusted banks, and many others that according to him “slows down the entire transaction process”. “Blockchain is a safe and effective tool for the management of value-added tax. This technology would contribute to reducing the costs of managing Tax and accelerate its collection by 80 per cent,” he said.

He urged the government to be a pioneer in the GCC in using “Blockchain” in the collection of value-added tax, “as this technology eliminates the role of intermediaries such as accounting companies or banks between the merchant and the government.” “Blockchain speeds up government access to tax revenues from the final consumer of the service or Item, and also accelerate the process of refunding the merchant and supplier of the tax”.

Ministry receives 224 VAT related complaints

date: 20190107

Organized By: The Daily Tribune - News of Bahrain

External URL: http://www.newsofbahrain.com/bahrain/49974.html

The Ministry of Industry, Commerce and Tourism (MOICT) yesterday confirmed that it has responded to a total of 224 VAT related complaints in addition to more than 1,130 VAT inquiries, since its induction on January 1st, 2019. The Ministry’s ‘Companies Control’ and ‘Consumer Protection’ directorates have successfully inspected more than 430 vendors across the Kingdom to ensure the correct application of the VAT.

The Ministry is committed to continue monitoring the movement of all goods and service in accordance with the newly published list of basic food items that are not subject to VAT, it said in a press release issued. “All sales outlets are required to comply with the Kingdom’s VAT Law and its executive regulations.” Consumers can report violations by calling 80008001, the ministry added.

The Central Bank of Bahrain (CBB) on Saturday reiterated its commitment to continue monitoring all financial institutions to ensure the correct implementation of Value Added Tax (VAT). Interest payments on loans, deposits, currencies trading, issue or transfer of ownership of securities (equities or debt), and life insurance and reinsurance contracts are not subjected to VAT, the CBB highlighted. As many as 94 goods and services have been exempted from VAT, according to authorities.

Purchase of gold and jewellery now subject to VAT

date: 20190101

Organized By: Israeli Diamond Industry

External URL: https://en.israelidiamond.co.il/news/retail-and-jewelry/bahrain-purchase-of-gold-and-jewellery-now-subject-to-vat/

The Kingdom of Bahrain is imposing a new VAT (value-added tax), making it the third Gulf Cooperation Council (GCC) member state to impose VAT, following the UAE and Kingdom of Saudi Arabia. The initial rate of VAT in Bahrain is 5%.

The purchase of gold and silver jewellery and the charges paid for making of the jewellery would be subject to VAT. Pearls and gemstones are, at least for now, exempt from VAT. According to Diamond World, during the last week of December “there was pre-VAT rush in gold jewellery shops” as consumers enjoyed the last days of pre-VAT prices.

As for penalties, failing to register within the required period for more than 60 days will be penalised a maximum 10,000 Bahraini Dinar ($26,527). Failing to submit a VAT return or not making a payment within the required period will be penalized between 2.5%-5% of the due tax amount.

NBT highlights efforts to enhance consumer protection and compliance ahead of VAT induction

date: 20181227

Organized By: National Bureau of Taxation

External URL: https://www.nbt.gov.bh/releases/15

The National Bureau for Taxation (NBT) today highlighted its ongoing efforts to enhance consumer protection and compliance with the VAT law and its Executive Regulations in preparation for its induction on January 1, 2019.

The NBT has introduced various initiatives to enhance transparency and increase consumers’ awareness in regards to their rights. In this context, consumers are reminded that they are not required to register for VAT nor are they expected to go through the registration certificate procedures.

Consumers are also encouraged to make sure that shops clearly display their VAT registration certificate prior to paying the VAT.

Consumers are reminded to call 80008001 or email vat@mof.gov.bh to report any violations including levying tax on goods and service not subject to VAT or charging VAT prior to its induction.

Over 1,000 enterprises register for VAT first phase

date: 20181226

Organized By: National Bureau of Taxation

External URL: https://www.nbt.gov.bh/releases/14

The Assistant Undersecretary for Development and Policy of Public Revenues at the Ministry of Finance and National Economy, Rana Ebrahim Faqihi, today affirmed that over 1,000 local and international enterprises have begun registering for the first phase of the Value Added Tax (VAT) implementation – effective on January 1, 2019, at a standard rate of 5%.

The Assistant Undersecretary highlighted the VAT registration process, noting that 668 enterprises have already received their VAT Registration Certificate and more than 500 companies have initiated the process of registration.

The Assistant Undersecretary went on noting that the ministry’s call center is fully prepared to provide swift general and technical assistance to taxpayers. As of today, the call center has successfully responded to more than 1,500 tax-related inquires of which 90% were immediately settled by VAT experts, as well as promptly responding to more than 500 email inquiries.

Faqihi went on noting that the National Bureau for Taxation (NBT) will continue to advance its multiple communication platforms well after the VAT’s induction to ensure information is suitably accurate and to continue to provide a platform where citizens can report misconducts; such as charging VAT prior to induction and applying VAT on goods and services that are not subject to VAT.

Faqihi concluded by urging citizens to contact the call center on 80008001 or vat@mof.gov.bh for general and technical inquiries in addition to taking advantage of the information available on the NBT’s website (www.nbt.gov.bh) and the information available on Instagram and Twitter platforms

Finance Ministry highlights VAT exemptions

date: 20181213

Organized By: National Bureau of Taxation

External URL: https://www.nbt.gov.bh/vat_news_4

The Assistant Undersecretary for Development and Policy of Public Revenues at the Ministry of Finance and National Economy, Rana Ebrahim Faqihi, highlighted that the 5% Value Added Tax (VAT) will not be applied on 94 basic foodstuffs in addition to essential sectors such as education, health, real estate, oil and gas among other important sectors.

Bahrain’s National Bureau for Taxation, the entity responsible for tax administration and collection according to Law and regulations, launched a new website (www.nbt.gov.bh). The website provides more information to taxpayers and collectors on the Kingdom’s newly introduced VAT and its registration process. Bahrain’s VAT Law will be implemented starting Jan 1st 2019, in line with the unified VAT agreement approved by the Gulf Cooperation Council at the Riyadh Summit in 2015.

Finance Ministry committed to ensuring transparency, consumer protection in VAT implementation

date: 20181222

Organized By: National Bureau of Taxation

External URL: https://www.nbt.gov.bh/vat_news_6

The Assistant Undersecretary for Development and Policy of Public Revenues at the Ministry of Finance and National Economy (MoFNE), Rana Ebrahim Faqihi, affirmed the Ministry’s commitment to increasing consumers and businesses’ awareness about the VAT procedures and legal framework, in line with the VAT Law and its Executive Regulations, underscoring the Ministry’s commitment to strengthening consumer protection and transparency.

Faqihi added that the Ministry of Finance and National Economy and the National Bureau for Taxation have dedicated resources towards raising VAT procedural and legal framework awareness, including an extensive series of workshops for business owners and companies that will be subject to the VAT, in addition to directly communicating with businesses to ensure effective and seamless implementation of VAT on January 1, 2019.

The Assistant Undersecretary noted that all registered businesses are required to display their VAT registration certificate, which includes the business’s Commercial Registration number and the VAT registration date, in a prominent place that is clearly visible to consumers prior to levying the 5% VAT, to avoid violations.

The Assistant Undersecretary stressed that all registered businesses are also legally required to display the final prices of all goods and services – inclusive of tax before any sale.

The Assistant Undersecretary went on noting that it is a violation to mislead consumers.

The Assistant Undersecretary concluded by highlighting NBT’s efforts towards establishing multiple communication channels including the hotline 80008001, establishing the email vat@mof.gov.bh, as well as detailing VAT information uploaded on NBT’s recently launched website www.nbt.gov.bh

Royal directives to review VAT application mechanisms during trial period hailed

date: 20181225

Organized By: National Bureau of Taxation

External URL: https://www.nbt.gov.bh/vat_news_8

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa hailed the Royal directives of His Majesty King Hamad bin Isa Al Khalifa to review the VAT mechanisms during the trial application period and observe the citizens needs through the exemption of basic commodities and services.

The Ministry of Finance and National Economy as well as the governmental entities concerned with the application of VAT will implement the Royal directives by ensuring the soundness of application procedures from day one of the trial period while taking into consideration the importance of market stability and the steady and smooth supplies of commodities and services to the citizens and residents to ensure the continuity of development and growth of the sectors whilst ensuring the citizens’ needs, he said.

This came during the meeting held at the Ministry of Finance and National Economy premises in the presence of Industry, Commerce and Tourism Minister Zayed bin Rashid Alzayani and Bahrain Chamber of Commerce and Industry (BCCI)’s deputy chairman Khalid Najibi.

Shaikh Salman stressed the importance of continuous communication, consultation and discussion with the Bahrain Chamber of Commerce and Industry regarding the VAT mechanisms. He cited the ongoing cooperation and discussion of viewpoints to reach the results that would serve the aspirations in the interest of the homeland and the citizen foremost.

Event in Bahrain on VAT implementation regulations and VAT challenges

date: 20181221

Organized By: Bahrain Chapter-The Institute of Chartered Accountants of India

External URL: https://www.linkedin.com/feed/update/urn:li:activity:6481849111883677696

Bahrain Chapter-The Institute of Chartered Accountants of India in association with MCA Pyramid Consulting hosted a successful event on VAT implementation regulations and VAT challenges. A session on Supply chain Digitization was also conducted. Excom members with speakers Mr Girish Chand, Mr Ashish Chakravarti. Thank you to the speakers, MCA Pyramid consulting and, CA Lakshmanan R

Vat event in Bahrain by MCA Pyramid and the Institute of Chartered Accountants of India

Key VAT issues in spotlight

date: 20181206

Organized By: GDN Online Desk

External URL: http://www.gdnonline.com/Details/444482/Key-VAT-issues-in-spotlight

The Bahrain British Business Forum (BBBF) and BDO hosted a meeting at the Gulf Hotel Convention Centre to discuss the upcoming introduction of VAT in Bahrain. The meeting featured BDO Bahrain’s VAT specialists Smita Roy, BDO Partner (leader VAT), and Marlon Appleton, BDO senior manager (VAT), as guest speakers.

More than 130 BBBF members were given a presentation by Ms Roy and Mr Appleton, who provided latest information from the Finance Ministry about the implementation of VAT in Bahrain on January 1, 2019. They also shared their experience from the implementation and practice of VAT in Saudi Arabia, the UAE and the UK.

Ms Roy said: “With the VAT implementation just weeks away, it is critical for businesses in Bahrain to understand that VAT will impact every aspect of business from transactions, processes, documentation to people; and it is vital they be ready and prepared for the change. While this indirect tax system is new to Bahrain, VAT regime has been in place in various countries for quite some time and BDO’s VAT experts with their rich experience can provide comprehensive support to companies in navigating the VAT journey in Bahrain.”

“To avoid many of the pitfalls experienced by businesses in Saudi Arabia and the UAE, it is important for businesses to have an action plan for VAT readiness to ensure smooth transition to VAT. The readiness measures should be effectively deployed to avoid last minute chaos,” added Mr Appleton.

Large firms must register for VAT before January 1st

date: 20181128

Organized By: GDN Online - Avinash Saxena

External URL: http://www.gdnonline.com/Details/443255/Large-firms-must-register-for-VAT-before-January-1st

Companies in Bahrain with sales exceeding BD5 million annually must register with tax authorities before January 1, ahead of the rolling out of Value Added Tax (VAT).

The announcement was made today by Finance Ministry Assistant Under-Secretary for

Development and Revenue Policies Rana Faqihi.

She said VAT of five per cent would be rolled out in a phased manner, starting with companies exceeding annual sales of BD5m.

They should register with the National Bureau for Taxation (NBT), the entity in charge of managing the tax, before January 1.

A series of briefings will also be held to ensure businesses are ready for the first phase of VAT.

An NBT hotline has been set up for VAT enquiries on 80008001, or people can e-mail vat@mof.gov.bh.

Ninety-four basic foodstuffs and other basic goods and services are exempt from VAT, in addition to a number of other goods and services including education and health services.

Saudi Arabia & Bahrain VAT deadlines fall in December

date: 20181211

Organized By: Out Law - Joanne Clarke

External URL: https://www.out-law.com/en/articles/2018/december/saudi-arabia-and-bahrain-vat-deadlines-fall-in-december/

VAT will also come into effect in the Kingdom of Bahrain with effect from 1 January 2019, with an obligation for some businesses to register in December 2018.

Small businesses whose obligation to register for VAT in the Kingdom of Saudi Arabia (KSA) was deferred under transitional provisions will have to submit an application for registration by 20 December 2018. In addition transitional arrangements which meant that VAT did not have to be paid in respect of existing contracts come to an end on 31 December, meaning that contract prices may need to be renegotiated.

VAT was introduced in the KSA with effect from 1 January 2018.

Appreciating the challenge facing businesses in the region, the minister of finance Mohammed Al-Jadaan, together with the board of the General Authority on Zakat & Tax (GAZT), approved the inclusion of transitional provisions in the VAT Implementing Regulations in September 2017. Two of these transitional provisions may now require action by businesses.

Under KSA VAT rules, any person whose annual value of taxable supplies exceeds or is expected to exceed the mandatory registration threshold of SAR375,000 ($100,000) is required to register for VAT with GAZT within 30 days.

However, if the annual value of their supplies does not exceed SAR1 million ($267,000) the transitional rules provided relief from registration in advance of 1 January 2018. The rules defer the effective date of registration for these businesses to 1 January 2019, but the application for registration has to be submitted by 20 December 2018.

“To allow sufficient time to gather the necessary information and documentation for the registration application, together with the time it may take for GAZT to process your application, it is important that businesses affected by this transitional provision, who have not already voluntarily registered, start the process as soon as possible,” Joanne Clarke said.

VAT backlash blow to MPs’ re-election

date: 20181128

External URL: http://www.gdnonline.com/Details/443137/VAT-backlash-blow-to-MPs%E2%80%99-re-election

A PUBLIC backlash against the previous parliament, fuelled by anger at the imminent introduction of Value Added Tax (VAT), has been credited with dashing the hopes of 13 MPs seeking re-election.

Of 23 incumbent MPs who ran for parliament again this year, only two successfully defended their seats in the first round of voting on Saturday – Adel Al Asoomi and Isa Al Kooheji.

Thirteen of them were dumped outright by voters, while eight face a second-round run-off this weekend.

The cull is an indication of widespread dissatisfaction at parliament’s performance during the past four years.

However, 27 MPs who supported the introduction of VAT in January were singled out for criticism – both ahead of the election and on election day itself.

Influential social media accounts posted the names and pictures of those who voted in favour of VAT as part of a campaign encouraging voters not to support them again.

Pictures and messages reminding people were also circulated on the day of the election on Saturday.

“The public is upset and angry,” explained political analyst Fareed Ghazi, a lawyer who served in parliament between 2002 and 2006.

“People don’t want MPs who imposed taxes on them, didn’t secure compensation or financial benefits and even tightened restrictions on political and human rights.

“Voters today are extremely intelligent and have strong opinions.

“This translated into the outcome of the first round of the election.”

Seventeen of the 27 MPs who last month voted in favour of VAT tried to defend their seat.

Economy, VAT dominate discussions among voters in Bahrain’s local elections

date: 20181121

Organized By: Ismaeel Naar Senior Journalist, Al Arabiya English

External URL: http://english.alarabiya.net/en/business/economy/2018/11/21/Bahrain-gears-up-for-local-elections-with-economy-VAT-key-issues-among-voters.html

As Bahrain gears to hold its fifth parliamentary and municipal elections, the impending implementation of Value-Added-Tax and rising inflation rate are driving discussions between candidates and voters across the island-kingdom.

The general elections for the lower house of parliament and the municipality council will be held on November 24 with many districts expecting to hold a run-off vote on December 1 as independent and past Members of Parliament are expected to fight incumbents for their seats.

But a key issue across the governorates is the topic of VAT and how it may affect constituents in the coming year. Bahraini legislators approved a draft law on October 7 that would impose VAT for the first time in the kingdom, starting from 2019. Saudi Arabia and the United Arab Emirates are the first two countries introducing VAT at a 5 percent rate, as part of a Gulf Cooperation Council (GCC) agreement in 2018.

How VAT in Bahrain impacts neighbouring GCC countries

date: 20181105

Organized By: Khaleej Times - Surandar Jesrani

External URL: https://www.khaleejtimes.com/business/economy/how-vat-in-bahrain-/impacts-its-neighbours

Value-added tax, being all pervasive, impacts a country’s economy as well as the industries therein. Furthermore, VAT impact also spills over to the import and export of goods and services. The UAE, all along, has business ties with Bahrain through either a local presence in Bahrain (as branch or local entity) or through export/import of goods or services.

Typically, after the introduction of VAT in a country, businesses discover that their entire business ecosystem – i.e., their vendors, suppliers and customers located in and outside the country – are also part of their business. Underlying reason for this tectonic shift is the fact that in VAT, businesses cannot take unilateral decisions and have to take decisions bilaterally as a buyer can debate on the applicability of VAT (for example, whether the transaction qualifies as ‘export’ or not).

Outbound transactions

As mentioned above, dependency between the supply chain intensifies, particularly, in cases of outbound supply of goods (like goods being supplied to Bahrain from the UAE).

Typically, in such transactions there are two aspects to be vetted, one whether the supply qualifies as export from UAE and whether the transaction qualifies as import in Bahrain. Thus, it is advisable for UAE entities having business interests in Bahrain to initiate early dialogue on the likely impact to identify possible issues and documentation requirements to avoid VAT debates/disputes with customers.

Import of goods

Typically, VAT is payable at the time of import of goods (unless facility of deferment is provided) along with customs duty.

Thus, after introduction of VAT, imports in Bahrain may attract VAT and thus, at the time of import itself it will be critical to determine the applicability of VAT on goods being imported in Bahrain (as certain goods such as specified medicines may not attract VAT). Also, procedural aspects like declaration of the VAT registration number on import documents, linking of the VAT number with customs, etc, also become critical during transition.

KPMG in Bahrain Discusses the Implications of Bahrain Introducing VAT From Next Year

date: 20181030

Organized By: Press Release

External URL: https://www.albawaba.com/business/pr/kpmg-bahrain-discusses-implications-bahrain-introducing-vat-next-year-1206678

Around 200 senior executives from the Bahrain business community attended today a session organized by KPMG in Bahrain to jointly discuss the recently published VAT Law, the implications and consequences the new tax will have across the main economic sectors of the Kingdom. Being 60 days away from VAT implementation in the Kingdom of Bahrain, the half-day event was an ideal platform for delegates to discuss and understand the type of changes they need to make to comply with the new tax environment.

Philippe Norré, Partner and Head of Tax & Legal at KPMG in Bahrain and Ali Al Mahroos, Senior Tax Manager at KPMG in Bahrain were the keynote speakers. During the event, they reviewed practical steps companies must take in the next few weeks to be VAT ready in time. There were lessons to be learnt from the United Arab Emirates and the Kingdom of Saudi Arabia but in particular the very specific Bahrain environment and the specifics of the Bahrain system were reviewed against actions required.

“VAT will not impact the business itself, but it will change how companies administer their business. VAT does not need to be only a burden and risk to businesses but it can also be an opportunity for better processes, optimization of systems, introduction of technology for tax and better risk management.

Bahrain’s parliament approves draft VAT law

date: 20181008

Organized By: Reuters/Dubai

External URL: https://www.khaleejtimes.com/region/bahrain/bahrain-parliament-approves-gulf-arab-accord-on-vat--

Bahraini legislators approved a draft law on Sunday that would see value-added tax (VAT) imposed for the first time in the kingdom, state news agency BNA reported.

The House of Representatives approved a Gulf Arab agreement to introduce VAT after a royal decree ordered parliament to hold an extraordinary session on Sunday, BNA reported, without giving details of the vote.

The move came a few days after Bahrain’s wealthier neighbours Saudi Arabia, the United Arab Emirates and Kuwait offered a $10 billion aid package to avoid the risk of a debt crisis in the country, which was also tied to fiscal reforms.

The bill is yet to be approved by the parliament’s upper house, which is expected to hold a similar session later this week.

Bahrain parliament approves VAT agreement

date: 20181007

Organized By: Habib Toumi, Bureau Chief

External URL: https://gulfnews.com/news/gulf/bahrain/bahrain-parliament-approves-vat-agreement-1.2287327

Dubai: Manama: Bahrain is set to become the third Gulf Cooperation Council (GCC) to implement the unified agreement on Value Added Tax (VAT) on goods and services.

On Sunday, the kingdom’s bicameral parliament, holding an extraordinary session upon a royal order issued last week, approved VAT at the rate of five per cent effective from January 1 next year.

The lower and upper chambers of the parliament also approved new pension rules for ministers and members of the Council of Representatives, the Shura Council and the Municipal Council.

VAT and changes to the pension system are part of efforts to fix public finances hit hard by the drop in oil prices which also pushed Bahrain’s dinar to its lowest in more than a decade.

In February, Bahraini Minister of Finance Shaikh Ahmad Bin Mohammad Al Khalifa said that Bahrain would introduce a VAT and would have everything set up by the end of 2018.

Experts opine - Bahrain to start VAT soon

date: 20180926

Bahrain will be the next country to implement five percent value-added tax (VAT) after the UAE and Saudi Arabia as part of the GCC framework agreed between the six states, according to tax experts.

Bahrain seems to be the next country to implement VAT if we listen to tax experts’opinions that are recently appearing online.

We share here links to two articles that appear to indicate that Bahrain might be announcing VAT soon.

https://www.albawaba.com/business/bahrain-next-line-implement-vat-gcc-1191316

http://www.gdnonline.com/Details/402361/Online-businesses-urged-to-gear-up-for-VAT-impact