VAT Implementation in Bahrain| How to Implement VAT in Your Company in 5 Steps?

VAT Implementation in Bahrain

The National Bureau for Revenue (NBR)  is the government authority who is responsible for the implementation and administration of VAT in Bahrain. With NBR lies the sole responsibility of administering, monitoring and collecting taxes and as well as fines if VAT Compliance is not done in accordance with the rules and regulations.

Value Added Tax (VAT) in Bahrain has been introduced from 1st January 2019. The Kingdom of Bahrain is the third Gulf Cooperation Council (GCC) State to implement VAT after the Kingdom of Saudi Arabia and United Arab Emirates. The VAT rate has been levied at a minimum rate or 5%.  Certain goods and services will be Zero Rated (0%) and certain goods and services shall also be exempted from VAT in Bahrain.

How to Implement VAT in Your Company?

Complying to VAT rules and regulations, which is a transitional change for businesses in the Kingdom of Bahrain is itself a challenge and is necessary now with the introduction of VAT in Bahrain. Hence, businesses must strictly adhere to the Bahrain VAT law and comply to it while implementing VAT in your business.

Five Steps to VAT Implementation in Bahrain

Step No. 1: VAT Registration

VAT registration  is an e-process through NBR’s portal where you can register for VAT in Bahrain. Once your VAT Registration Process is completed you will be allocated a special Tax Registration Number.  But before registering for VAT you should know whether you should go for Group Registration or Standalone also if you can register on a voluntary basis.

Step No. 2: Understand the business and the transaction processes

In order to understand the business and its transaction process, an initial synopsis on VAT in Bahrain and awareness should me given to the management and the employees. The organization structure and its operation processes should be well understood. After having a fair idea on the operations and processes of the businesses, changes that are to be done should be intimated to the IT department, Finance & all other relevant departments.

Step No. 3: Analyze the Impact of VAT on your business

When you analyze the VAT impact on your business you should prioritize your financials first and check the VAT impact on it. While analyzing, if there are any specific issues than it should be rectified.

Step No. 4: Managing the VAT Transaction Process

The VAT application trail run should now progress, specific issues should be identified now. Once the issues are all identified and complied as per Bahrain VAT Regulations, we are all set for this transitional introduction of VAT in Bahrain.

Step No. 5: VAT Return Filing

VAT Return Filing is an online process where you will have to file your return on a monthly or a quarterly basis as per your VAT Return Filing period prescribed by NBR. Now, while you are preparing to submit your VAT Return you should well review the Tax Invoices issued, Tax Invoices received, Tax Credit Notes issued & Tax Credit Note received. The ledgers and registers should be properly reconciled.

Are you looking for VAT Implementation Service in Bahrain?

We, Emirates Chartered Accountants offer support to the businesses for VAT implementation in Bahrain. Our tax officers having professional tax approaches with experience of implementing VAT in various industries will guide and support to plan an effective VAT Compliance approach in every aspect of your business and minimize the risk of penalties and fines that would incur for non-compliance of VAT Law.

Why to hire Emirates Chartered Accountants as VAT Consultants?

  • Thorough knowledge with Bahrain VAT law and regulations.
  • Hiring a VAT consult can definitely reduce the cost to the businesses.
  • VAT Expert’s advice can be given for all the issues confronted by the clients.
  • Provide solution and recommendations changes if necessary.
  • Immediate assistance as queries or clarifications raised through telephone or email will be answered through telephone or email itself.
  • Stay updated with Bahrain VAT law during the course of your business operation.

Our VAT Services in Bahrain are:

For TAX Service in Bahrain

Mr. Bichin

+973 3619 8998


For TAX Service in UAE

Mr. Navaneeth

+971 55 889 2750



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