VAT declaration
VAT-registered businesses are required to submit monthly VAT returns. There is often an option to submit quarterly VAT returns if turnover is below a specific limit. In addition to periodic returns, an annual summary VAT return is required.
Bahrain specifics
Bahrain is a member of the GCC, with a VAT rate of 5% as of January 1, 2019.
A phased introduction of VAT by the Ministry of Finance uses transitional registration thresholds determined by annual sales value.
The Ministry of Finance (MoF) has a phased introduction of VAT through transitional registration thresholds for 2019 determined by annual sales value.
- Businesses below the required VAT registration thresholds for 2019 are not required to register in 2019. To voluntarily register in 2019, they must exceed the voluntary registration threshold of BHD 18,750
- Businesses with annual sales that exceed BHD 37,500 must register by 20 December 2019 with an effective registration date of 1 January 2020
- Businesses with annual sales that exceed BHD 500,000 must register by 20 June 2019 with an effective registration date of 1 July 2019
- Businesses with annual sales that exceed BHD5 million must register by 20 December 2018 with an effective registration date of 1 January 2019
The VAT declaration is submitted using online filler or manual data input in the portal.
In February 2019, the Bahrain National Bureau for Revenue (NBR) published the standard VAT return contents after the introduction of the 5% consumption tax. The guide addresses the applicability of VAT on the import and export of goods and services into and from Bahrain.
The NBR has the launch a new VAT payment service, in cooperation with the Information and eGovernment Authority.
Taxpayers can view VAT payment amounts that are due and make payments using the National Portal. The new portal is part of the NBR digital transformation initiatives.