Bahrain VAT Executive regulations

The Bahrain Ministry of Finance (“MoF”) has now released the VAT Executive Regulations., following the publication of the Value Added Tax Law (“VAT Law”) in October 2018. Responsibility for implementing and administering VAT in Bahrain will rest with the National Bureau for Revenue (NBR).

The Regulations provide further details on the application of the VAT Law that will take effect from

1 January 2019.

Below are some of the brief highlights of the Executive Regulations;

• The mandatory VAT registration threshold is BHD 37,500 and the voluntary registration threshold is BHD 18,750. Registration can be done on the NBR’s website.

• Large businesses will file tax returns on a monthly basis and all other businesses will file quarterly. However, for 2019, registered businesses will have only three or four tax periods, depending on turnover.

• A VAT registered business must issue a tax invoice when a supply of goods or services is made. It can be in Arabic or in English. Simplified tax invoices can be issued for a supply with a consideration that does not exceed BHD 500

• Business records must be maintained by a taxable person. These records may be in Arabic or English and may be maintained in an electronic form provided that they can be produced in a paper format, and in a chronological and sequential manner.