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GCC Indirect Tax Weekly Digest
December 22, 2019
NBR publishes guide on classification of businesses
The Bahrain National Bureau for Revenue (NBR) has published a guide on classification of businesses.
The guide is intended to assist businesses with correctly classifying their business when registering for Value Added Tax (VAT) in Bahrain by referencing the United Nations’ Industrial Classification of all Economic Activities (ISIC).
The VAT regime in Bahrain will reach a significant milestone this week on 20 December 2019, when businesses which make or expect to make between BHD 37,500 and BHD 500,000 in annual taxable revenue are required to register for VAT. This brings the mandatory VAT registration threshold in Bahrain into line with the threshold stated in the Gulf Cooperation Council (GCC) VAT Treaty, which has already been implemented in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE).
Businesses which are required to register by this deadline and have not yet initiated the process should do so as a matter of priority, in order to avoid penalties for non-compliance. Deloitte can assist your business with preparing and submitting the VAT registration application.
Businesses making or expecting to make more than BHD 5,000,000 in annual taxable revenue were required to register by 20 December 2018, while businesses making or expecting to make between BHD 500,000 and BHD 5,000,000 in annual taxable revenue were required to register by 20 June 2019.
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.