As per our understanding, the Kingdom of Bahrain is planning to double the standard rate of Value Added Tax (VAT) from 5% to 10% with effect from 1 January 2022. While the National Bureau for Revenue (NBR) has yet to make an official announcement, the proposed rate increase is part of the economic improvement plans following the impact of Covid-19 on the economy and the Fiscal Balance Program.
This is a major and unprecedented step-change in Bahrain tax policy, which will impact businesses, governmental organizations and consumers alike.
In light of the above, Deloitte hosted a 45-minute webinar on Thursday, 25 November 2021 where our experts explored the following topics:
- Pricing - Dealing with vendors/customers
- Potential transitional provisions
- Enterprise resource planning (ERP) and System changes
- Impact on certain industries
- Other impacts
Based in Riyadh, Michael leads the Middle East Indirect Tax practice, overseeing various indirect tax implementation projects across the region and actively driving other advisory and compliance services for clients. Previously, Michael was the Indirect Tax Leader of Bahrain and the Kingdom of Saudi Arabia (KSA). He has over 29 years of experience in Value Added Tax (VAT) and has worked across a number of jurisdictions including the USA, Switzerland and the UK to help clients deal with and manage their indirect taxes. He is using his experience in the GCC to advise on practicalities for VAT implementation and post-implementation processes, as well as addressing technical issues. Michael has significant experience working across a range of sectors, most notably the telecommunications, travel, manufacturing, oil and gas and defense industries. He also advises clients around supply chain reorganizations and VAT optimization planning in addition to providing advice in respect to mergers and acquisitions. Michael works closely with the Deloitte Tax Technology teams in helping clients with their systems, process, and compliance challenges.