VAT in Bahrain – Tax Services

The Kingdom of Bahrain has introduced Value Added Tax (VAT) from 1^st January 2019. VAT in Bahrain has been implemented at a standard rate of 5%. The GCC (Gulf Co-operation Council) countries have agreed ‘in principle’ to the GCC VAT Agreement to levy VAT in the region and is agreed by the GCC countries that VAT will be introduced in every country.

VAT Implementation in Bahrain is expected to take over a patterned shift in the business structure of the region. Businesses in those GCC countries for those who have adopted to VAT principles and regulations will have to now comply properly with the Bahrain VAT law. Once a business progresses with VAT Registration, they will also have to file for VAT Return Filing on a periodic basic as per their tax period mentioned by the National Bureau for Revenue (NBT).

VAT is the commonest types of consumption tax found around the world. Over 150 countries have implemented VAT which includes the European Union (EU), UK, Canada, New Zealand, Australia, Singapore, Malaysia, India etc. USA, GCC countries and some other countries, especially from African continents, have not introduced VAT.

Value Added Tax (VAT) is an indirect tax charged on selected goods and services bought and sold by businesses.

» VAT is a type of general consumption tax that is collected incrementally, based on the value added, at each stage of production or sales.
» It is usually implemented as a destination-based tax.
» It is imposed on most supplies of goods and services that are bought and sold.
» It is charged at each stage of the ‘supply chain’.
» The difference between tax received/receivable from the customers & the tax paid/payable to the tax supplier & service provider is the net liability to be paid or refund can be done from the tax authority.
» The tax return has to be filed on monthly/quarterly/half yearly basis, as prescribed by the Authority.

Emirates Chartered Accountant Bahrain is one of the group company of Emirates Chartered Accountants Group headquartered in Dubai, UAE. We horn expertise in providing the best VAT Consultancy Services in UAE. We are registered TAX Agent in the region registered as ECA Taxation Procedures Follow Up L.L.C under the Emirates Chartered Accountants Group in order to provide the services as a Tax Agent to our clientele.

Our VAT Service in UAE comprises of below: