VAT Compliance Made Easy – Register Your Business in Bahrain with BMS Auditing

VAT Compliance Made Easy – Register Your Business in Bahrain with BMS Auditing

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The threshold for mandatory VAT registration in Bahrain is BD 37,500. BMS Auditing Bahrain is offering hassle-free VAT registration services in Bahrain. Every business or individual in Bahrain should follow Bahrain's VAT compliance and register with VAT. All the businesses must know, who is liable to register under VAT. However, there is an option to voluntarily register under VAT, while there are businesses that are totally exempted from VAT registration.

Documents Required for VAT Registration in Bahrain

There are certain VAT registration requirements in Bahrain. The important documents required to apply for the online VAT registration are as follows:

Copy of Commercial registration certificate
Independent Auditors report
Audited Financial statement
Report on expense budget
Proof of the relationship between HQ and its subsidiaries
Certificate of Customs Registration
Copy of partnership agreement
Copy of Incorporation certificate
Copy of the identification of the designated individual

VAT Rates in Bahrain

VAT registration in Bahrain refers to the process in which an entity or an individual is requested to enroll in VAT. VAT registration was introduced in January 2019 with a rate of 5%.  A standard rate of 10% Value Added Tax (VAT) has been applied in the Kingdom of Bahrain with effect from 1 January 2022. The National Bureau for Revenue (NBR), is the government entity responsible for implementing and collecting VAT in Bahrain. When registered, a VAT account number would be assigned to them. Only the registered entities or individuals registered with the National Bureau for Revenue (NBR) would be eligible for a VAT Refund.

The following sales are to be considered for the VAT threshold:

Standard rated products
Zero-rated products
Reverse-charged services received
Imported goods

Conclusion

In order to avoid the levy of hefty penalties and punishment due to non-compliance, it is important for every business unit to be familiar with VAT compliance in Bahrain requirements. The Ministry of Finance, Kingdom of Bahrain has undoubtedly stated that there will be no relaxation in charge of penalties for non-compliance so companies and businesses in Bahrain are advised to be VAT compliant as soon as possible.

Businesses have obstacles while planning for VAT, just as they do with any new regulation. BMS Auditing in Bahrain has a specialized staff of VAT Consultants. Our experienced VAT team in the Lower Gulf, in collaboration with international VAT experts across the BMS network, has been advising and implementing strategies to assist organizations in meeting their VAT obligations and reducing VAT liabilities, particularly for clients who do not have full VAT recovery.

 

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