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Find out moreThe final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.
Read the full editionThe Bahrain Ministry of Finance (MoF) has recently announced that VAT registration will be carried out in three different phases, depending on the value of the businesses’ annual supplies. The three registration phases are as follows:
Annual supplies |
VAT registration deadline |
Effective date of registration |
Exceeding BHD 5 million |
20 December 2018 |
1 January 2019 |
Exceeding BHD 500,000 but less than BHD 5 million |
20 June 2019 |
1 July 2019 |
Exceeding BHD 37,500 but less than BHD 500,000 |
20 December 2019 |
1 January 2020 |
This announcement follows the MoF’s previous announcement that the first phase of VAT registration will be limited to companies with BHD 5 million annual sales.
Businesses with an annual taxable turnover exceeding the voluntary registration threshold of BHD 18,750 may register for VAT on a voluntary basis.
Further, in a recent meeting held by the MoF with tax advisors on VAT implementation, the MoF has confirmed that the VAT regulations will be issued before the end of this month. In addition, the MoF provided additional details on the following issues:
Businesses should consider the VAT treatment of their transactions to ascertain whether they are required to register for VAT. While the postponement of VAT registration for some companies will give businesses additional time, businesses should consider whether they should register for VAT in order to recover VAT incurred on their procurement.
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.
Key Contacts:
Shiraz Khan
Senior Tax Advisor
s.khan@tamimi.com
Foutoun Hajjar
Partner, Head of Office – Bahrain
f.hajjar@tamimi.com
Rad El Treki
Head of Corporate Structuring – Bahrain
r.eltreki@tamimi.com
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