Bahrain VAT mandatory registration threshold

The situation

Registration is mandatory when taxable supplies exceed BHD 37,500 in the past 12 months or are expected to in the next 12 months.

The law

• Decree-Law No. 48 of 2018: registration thresholds: Mandatory registration at BHD 37,500 of taxable supplies in the past or next 12 months; voluntary from BHD 18,750
• Decree-Law No. 48 of 2018 on Value Added Tax: Bahrain VAT law administered by the NBR; covers registration, invoicing, returns and penalties

What it means for you

Use a rolling 12 month window, not the calendar year. Example: sales of BHD 3,400 a month give BHD 40,800 over 12 months, above the threshold. Count standard and zero rated supplies, not exempt ones. Once over, apply on the NBR portal and charge 10% from your effective date.

What to do

1. Total taxable sales for the last 12 months.
2. Project the next 12 months.
3. Apply on the NBR portal if either exceeds BHD 37,500.
4. Start charging VAT from the effective date.

Late registration fines can reach BHD 10,000.

Related

• Voluntary VAT registration in Bahrain
• Start charging VAT after registration
• Deregistering from VAT when sales fall
• Documents needed for Bahrain VAT registration
• Exempt sales and the VAT threshold
• Foreign company selling into Bahrain and VAT