Bahrain announces that the first phase of VAT registration is limited to companies with BHD 5 million annual taxable sales
The Bahrain Ministry of Finance (MoF) has announced that businesses with an annual turnover exceeding BHD 5 million must register for VAT before 1 January 2019.
However, the MoF announcement did not confirm that businesses with an annual turnover below this amount, but in excess of mandatory registration threshold, are not required to register by 1 January 2019. It may be implicit from the MoF announcement that such businesses may not be required to register by 1 January 2019.
It is not clear at this stage whether businesses that are seeking to register on a voluntary basis will be able to register by 1 January 2019.
The MoF has already contacted a few businesses requesting information and requiring the submission of a form for VAT registration purposes. A VAT registration timetable and more details on the VAT registration process are expected to be issued shortly.
What should you do next?
Businesses should consider the VAT treatment of their transactions to ascertain whether they are required to register for VAT. Given that there is less than five weeks for the implementation of VAT in Bahrain, it is important that businesses should commence their preparation for VAT immediately.
How can we help?
Al Tamimi can advise you on whether you are required to register for VAT and assist you with a VAT impact assessment or perform a second review to confirm the VAT treatment of your transactions. Please click here for our brochure on VAT implementation in Bahrain.
Please do not hesitate to contact Al Tamimi’s Tax Team if you require any assistance.