VAT group registration for related Bahrain companies

The situation

Bahrain VAT rules allow related legal persons meeting conditions to register as a tax group.

The law

• VAT Executive Regulations (Resolution No. 12 of 2018): Detailed rules on registration, tax periods, invoices and refunds

What it means for you

A group files one return and ignores supplies between members, which helps when companies charge each other. All members become jointly liable for the group's VAT. Conditions on control and establishment in Bahrain apply, so check each company.

What to do

1. List the companies and ownership.
2. Check control conditions.
3. Apply for group registration.
4. Set up one return.

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