The new VAT registration deadline will cover businesses whose annual supply value exceeded BD37,500 ($98,880) in the previous 12 months or will exceed BD37,500 in the next 12 months.
The Ministers of Finance of the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Kuwait…18 | the publication reaches you by | Bahrain News
“The government has taken yet another step to give businesses time to register under the VAT regime. We are confident that the new deadline will be sufficient to help business owners prepare the necessary documents required for their registration,” Panchal said.
The first stage covered large businesses whose annual supply value exceeding BD5,000,000. Their deadline was set on the December 20, 2018. For the second phase, businesses with an annual supply value exceeding BD500,000 were instructed to register from January 1, 2019 until June 20, 2019. The extension covered the final stage.
Businesses that fail to register within their deadlines are required to pay the government BD10,000. They also face 3 to 5 years of imprisonment if they do not register 60 days after their deadlines expire.
Bahrain is the third country in the GCC, after the UAE and Saudi Arabia, to implement VAT to reduce its heavy reliance on oil revenues. It has rolled out the new regulation starting January 1, 2019.
Business organisations in Bahrain are mandated to collect VAT and remit the amount to the local tax authorities.
Tally Solutions is a leading business software solutions provider that helps small and medium businesses manage accounting, inventory and achieve tax compliance in a timely and effective manner.
Do you have information you want to reach our readers?