The threshold for mandatory VAT registration in Bahrain is BD 37,500. BMS Auditing is is offering hassle-free VAT registration services in Bahrain. Every business or individual in Bahrain should follow Bahrain's VAT compliance and register with VAT. All the businesses must know, who is liable to register under VAT. However, there is an option to voluntarily register under VAT, while there are businesses that are totally exempted from VAT registration.

Who should register for VAT?

Registration follows a phased process wherein the business entities or the individuals within particular VAT supply groups need to register by specific dates.

Mandatory VAT Registration

Entities and individuals annually generate revenue more than the threshold of BHD 37500 and not more than BHD 500,000 annually are eligible for Mandatory VAT registration.

Voluntary VAT Registration

Entities and individuals generating revenue of more than BHD 18,750 annually are eligible for Voluntary VAT registration.

VAT Registration for Non-residents in Bahrain

Non-residents (without a fixed place for business or a fixed establishment) should register for VAT in 30 days from the first taxable stock to non-taxable persons, irrespective of the thresholds.

Non-residents could apply for VAT registration in Bahrain with the National Bureau for Taxation (NBT) directly, or by appointing a Tax representative to pay on their behalf.

Bahrain VAT in detail

The VAT in Bahrain Law has now been published and sets out the general principles for the application of VAT in Bahrain. In line with the Unified GCC Agreement for Value Added Tax (VAT), VAT has been implemented in Bahrain on 1 January 2019.

It is expected that the VAT Executive Regulations also has been published in the before implementation and provided more detail on specific areas of the Law. However, the Law sets out a number of differences from the VAT Laws that have been already been implemented in the UAE.

Some of these key differences relate to the zero-rating and VAT exemption provisions in the Law. In particular, it is expected that Bahrain will apply the zero-rate on basic food items, the construction of new buildings, education and healthcare services, local transport services, as well as oil and gas and derivatives.

The sale and lease of real estate as well as certain financial services (i.e. those with an implicit fee) and life insurance/reinsurance will be exempt from VAT. Financial services provided for an explicit fee including account management, certain trade finance services, and fund managers will be subject to standard rate VAT. Standard rate VAT will also apply to non-life insurance/reinsurance. A separate decree establishing a new tax authority in Bahrain has also been published.

Conclusion

VAT registration is a critical requirement for businesses operating in Bahrain, ensuring compliance with the Kingdom’s tax regulations. At BMS Auditing, we provide end-to-end VAT services—from registration and filing to advisory and compliance support. Our expert team ensures a smooth and accurate process, helping your business stay fully compliant while focusing on growth and efficiency. Partner with BMS Auditing for about what is Bahrain VAT