Who must register under VAT?
Since different rules apply to residents and non-residents, let’s take a look at them separately.
Mandatory registration for residents of Bahrain
Residents of Bahrain who are required to register for VAT are given different deadlines depending on the value of their annual supplies:
| Annual Turnover in Sales (in BHD) | Registration Deadline | VAT Effective From |
|---|---|---|
| Greater than BHD 5,000,000 | 20th December, 2018 | 1st January, 2019 |
| From BHD 500,000 to BHD 5,000,000 | 20th June, 2019 | 1st July, 2019 |
| From BHD 37,500 to BHD 500,000 | 20th December, 2019 | 1st January, 2020 |
Those taxable persons with annual supplies worth more than, or expected to be more than, BHD 5,000,000 must register for VAT by the 20th of December, 2018. These taxpayers will be VAT compliant starting on the 1st of January, 2019.
Those taxable persons with annual supplies worth more than, or expected to be more than, BHD 500,000 but less than or equal to BHD 5,000,000 must register for VAT by the 20th of June, 2019. These taxpayers will be VAT compliant starting on the 1st of July, 2019.
Those taxable persons with annual supplies worth more than, or expected to be more than, BHD 37,500 by the 1st of January, 2020, must register for VAT by the 20th of December, 2019. These taxpayers will be VAT compliant starting on the 1st of January, 2020.
Taxpayers who at first did not expect to have supplies worth more than BHD 5,000,000 but have exceeded this limit, must register for VAT within:
30 days after the last day of the month in which they exceeded the limit, or
If they have not yet exceeded the limit but expect to, then within 30 days before the first day of the month in which they expect to exceed the limit.
Taxpayers who at first did not expect to have supplies worth more than BHD 500,000, but have exceeded this limit after the 1st of July, 2019 must register for VAT within:
30 days after the last day of the month in which they exceeded the limit, or
If they have not yet exceeded the limit but expect to, then within 30 days before the first day of the month in which they expect to exceed the limit.
Mandatory registration for non-residents of Bahrain
Unlike residents, all non-residents must register for VAT as soon as they start making taxable supplies in Bahrain, regardless of the value of their supplies.
Non-residents may choose to register under VAT using a tax representative, a resident of Bahrain who has been approved by the NBR through an official power of attorney. If a non-resident taxable person has any tax liabilities, their tax representative will also be held accountable for the liabilities.