Bahrain small taxpayer VAT registrations

The third and final tranche of mandated businesses are now expected to register for VAT in Bahrain. Businesses with an annual turnover between the VAT registration threshold of BHD 37,500 and BHD 500,000 are expected to be VAT registered from 1 January 2020.

VAT registration applications are now being accepted for these businesses by the National Bureau of Revenue.

Bahrain introduced its 5% VAT regime in January 2019. It was the third of the six Gulf Cooperation Council countries to implement the tax as part of a an agreement signed in 2017. Only Saudi and the UAE have also implemented the agreed VAT regime of the six states.

Foreign companies, without a fixed establishment in Bahrain, should have registered by 1 January 2019.