The Basics of VAT in Bahrain

Since the introduction of Value Added Tax (VAT) in Bahrain, businesses have had to navigate a new layer of financial regulation. While VAT compliance may seem complicated, understanding the basics can protect your business from penalties and streamline your operations.

At Idris Accounting, we make VAT simple. Whether you’re just getting started or looking to improve your reporting, we can help.

What is VAT? VAT is a consumption tax applied to most goods and services. In Bahrain, the standard VAT rate is currently 10%. Businesses that exceed a certain revenue threshold are required to register with the National Bureau for Revenue (NBR).

Who Needs to Register? Businesses must register for VAT in Bahrain if they meet any of the following:

• Annual revenue of BHD 37,500 or more (mandatory registration)
• Voluntary registration, if revenue exceeds BHD 18,750

Steps to Register for VAT:

• Gather required documentation (commercial registration, bank info, etc.)
• Submit application via the NBR portal
• Receive VAT Certificate

We handle the process for you, correctly and on time.

Filing VAT Returns
Once registered, you’ll need to file VAT returns quarterly or monthly depending on your business size. Your return must include:

• Output VAT (on sales)
• Input VAT (on purchases)
• Net VAT due or refundable

We ensure your reports are accurate and submitted before the deadline, so you never have to worry about fines.

Why Work With Idris Accounting?

• End-to-end support from registration to reporting
• Local expertise in Bahrain VAT law
• Timely submissions, always

📞 Ready to get started? Call us at +973 17211072 or WhatsApp +973 33066700
✉️ info@iacbahrain.com