TaxSavvyBH

Late VAT registration penalty in Bahrain

I crossed the threshold last year but registered only now. What penalty applies?

The situation

Late registration can attract a fine of up to BHD 10,000, and VAT is due from when you should have registered.

The law

  • Decree-Law No. 48 of 2018: administrative fines and evasion offences: Late registration fine up to BHD 10,000; late return or payment 5% to 25% of the tax; other breaches up to BHD 5,000; evasion is a crime

What it means for you

The bigger cost is often the VAT you did not charge, which now comes from your margin. Example: BHD 60,000 of sales after the required date means BHD 6,000 of VAT may be due even if not collected. Register now, compute the back VAT and talk to customers about issuing tax invoices where possible.

What to do

  1. Register immediately.
  2. Compute VAT on supplies since the required date.
  3. Settle with the NBR.
  4. Fix your threshold tracking.

Late registration beyond 60 days can be treated as an evasion offence.

We can do this for youVAT registration with the NBR (mandatory, voluntary and non-resident): BHD 150

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