VAT Implementation

With effect from 1 January 2022, the Kingdom of Bahrain has implemented a standard rate of 10% Value Added Tax (VAT). The National Bureau of Revenue (NBR) is the government entity in Bahrain in charge of implementing and collecting VAT. Certain goods and services will be subject to zero-rate (0%) VAT, while others will be VAT-free.
VAT was first implemented in the United Kingdom on January 1, 2019.
To begin collecting the 10% VAT, all entities or individuals conducting an economic activity independently to generate income and make annual supplies exceeding the mandatory threshold of BHD 37,500 must register for VAT and obtain a VAT registration certificate and a dedicated VAT account number.
As a large, small, or medium-sized business, you must register with the National Bureau of Revenue (NBR) to obtain a registration number and a registration certificate to begin collecting the 10% VAT.
VAT will be a significant change for all businesses.VAT has a broad scope, and businesses must consider the impact of VAT and must choose the Best VAT services in Bahrain from a Top VAT Implementation firm in Bahrain on all transactions, as well as the potential impact on prices and margins.
Through a treaty signed by all member countries, the GCC countries have decided to implement Value Added Tax throughout the region.
When purchasing goods or services from a VAT-registered business, the end consumer bears the cost of VAT (VAT payer). In exchange, the VAT payers pay the NBR the VAT collected from the end consumer and recover the VAT paid to the suppliers.

Our VAT Specialists
Like many legislations, businesses face challenges when preparing for VAT and must select the Best VAT services in Bahrain from a Top VAT Implementation firm in Bahrain. We have a knowledgeable team of VAT Consultants. Our VAT experts in the Middle East assist organizations in achieving their VAT obligations & liabilities.

Our Strategy for VAT Services
VAT and indirect taxes are transactional and complicated. It can have a significant impact on the bottom line of your business. GSPU,a Top VAT Implementation firm in Bahrain can assist you with VAT and indirect taxation throughout the entire business lifecycle, from the formation of your company to the detailed structuring of transactions and litigation support.
GSPU will ensure that all of your company’s functions are following National Bureau of Revenue (NBR). Our VAT Agents will ensure full VAT compliance, including proper VAT invoice format and timely filing of VAT returns, as well as a variety of other operations that will help you meet your goals.
GSPU has a team of professional and experienced VAT experts who will assist you in running your business smoothly by providing the best and most customizable VAT services.
While VAT is not intended to be a business tax, collecting and remitting the tax to the government will incur significant compliance costs. There could also be cash flow consequences. To understand the impact of VAT, supply chains must be reviewed. VAT costs and accounting obligations must be identified to be addressed.
VAT adaptation will likewise entail updating or upgrading ERP and IT systems, as well as software interfaces, to correctly capture input and output VAT. Governance frameworks will also be reviewed and updated to ensure that policies, processes, and controls comply with VAT legislation.

How to prepare a company for VAT Implementation?

Your company's VAT preparedness is determined by its size and the amount of VAT-able supplies it makes each year. The National Bureau of Revenue (NBR) provides small, medium, and large businesses with readiness steps.

1.If your company's annual VATable supplies do not exceed 3 million Bahraini Dinars, it is classified as an SME (Small and Medium enterprises).

2. If your company's annual VAT-liable supplies exceed 3 million Bahraini Dinars, you are classified as a large business.

How to file VAT and VAT Returns?

VAT-registered businesses must file a VAT return detailing their business transactions that are subject to VAT sales and purchases. A VAT Return summarizes the value of a VAT payer's supplies and purchases during the VAT period and shows the VAT payer's Net VAT position.

VAT payers must file and submit their VAT returns through the NBR online portal.

If the NBR does not receive your VAT return within the specified filing period, the NBR may estimate your VAT return following Article (36) of the VAT law.

You can pay your company's outstanding VAT dues online using the VAT Bill Payment Service or the Fawateer service. You can contact the National Bureau of Revenue with any suggestions or inquiries (NBR).

How GSPU can help

Develops exact solution to meet your Tax needs

By listening to your tax concerns we assist you in assembling the best team.

Assists in getting a domicile certificate

Our team of experts will help you to achieve the domicile certificate as per your business needs

Obtains excise tax certificate to start your business Journey

We gain your excise tax certificate to initiate your business regarding excise goods

Ensures that our client's tax obligations are met

In the event of a tax-related issue, our Bahraini tax agents may aid businesses in representing themselves before the TAX department.

Submits VAT procedure & structure in the most efficient way

Our VAT experts will assist your business to reduce cash outflow.

Risk assessment services for Transfer pricing

GSPU can offer extensive expertise in the area of Risk assessment and management.

Contact us

+973 -38393646

info@gspubahrain.com

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