REMINDER: Bahrain launches 5% VAT January 2019

7 January 2019

As per our previous article, Bahrain implemented Value Added Tax (VAT) at 5% from 1 January 2019.

The Bahraini government has now confirmed that there is a mandatory VAT registration threshold of BHD 37,700 (approx. £78,000) for resident businesses. However, this threshold will not apply to non-resident businesses who will have to register from the first sale that they make in the country.

Bahrain is part of the UAE Gulf Cooperation Council (“GCC”) consisting of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. All of these countries had originally agreed to implement a harmonised VAT regime by 2018, however, only the UAE and Saudi Arabia managed to implement a VAT system by this deadline.

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