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Find out moreWelcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.
Read the 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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