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VAT Training in the Bahrain

VAT Training in Bahrain

The Kingdom of Bahrain (Bahrain) has announced their Value-Added Tax (VAT) Law on 9 October 2018. This law is under their Royal Decree No. (48) of 2018. The VAT in Bahrain will be implemented on 1 January 2019 at 5% as part of the 2018 agreement of those in the Gulf Cooperation Council (GCC).

Farahat & Co. is a regulated Tax Agent, and we have 35 years of experience in VAT training. We can provide you what you need when it comes to understanding VAT and implementing it in your company. We will provide you the syllabus and all the materials that you will need for the training. For the whole period of it, we will ensure that you will not come out of the training still uninformed and unenlightened about everything that you need to know about VAT. We offer our VAT training that starts from as low as AED 2,000 per delegate. For the pricing summary, please check it here.

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Program Outlines

Program Outlines

Some of the outlines that are included in our VAT training program are the introduction to the taxation law in Bahrain, modifications that need to be added in your sales invoice, modifications that need to be added in chart of accounts, the required accounting entries in sales transactions, and many more. For a more detailed information, please click here.

There is a list of people that is advised to attend the VAT training in Bahrain for preparation for VAT implementation in Bahrain. These people include CFOs, CEOs, Senior Accountants, Chief Accountants, and a lot more.
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VAT courses

Frequently Asked Questions

What are the Thresholds in VAT Registration in Bahrain?

The following below is the list of thresholds that are for VAT registration in Bahrain. This is accordance with the GCC VAT Agreement (refence: Saudi Arabian Riyal—SAR):

  • Mandatory registration threshold—SAR 375,000 (approx. BHD 37,700)
  • Voluntary registration threshold—SAR 187,500 (approx. BHD 18,850)
  • A nonresident person obligated to pay tax in Bahrain—irrespective of the supplies’ value (registration: direct or via a tax representative)

What are the Violations Against VAT Law in Bahrain?

Violations to the law are stated in Article 63 of the VAT law in Bahrain:

  • Failure in going through VAT registration within 60 days of the deadline of registration
  • Failure in paying for VAT within 60 days of the deadline of payment
  • Failure in providing a tax invoice
  • Charging VAT on non-taxable items
  • Unrightfully recovering VAT input

There are penalties for non-compliance. For instance, penalties for failing to register for VAT in Bahrain can get to BHD 10,000. On the other hand, the failure in giving requested information to the tax authority can be up to BHD 5,000.

What are Subject to VAT in Bahrain?

The Article 2 of the VAT Law in Bahrain says that the supply of all goods and services made and imported into Bahrain will all be subject to VAT. This is in accordance with the GCC VAT Agreement as well.

What are the Zero-Rated Supplies?

The law has certain provisions for the zero-rated supplies that are stated in Article 53. These zero-rated supplies will be determined based on specific conditions and procedures that the Regulations will outline.
The following are considered to be zero-rated supplies:

  • Supply and importation of foodstuffs (based on FECC (Financial and Economic Cooperation Committee)-approved list)
  • Oil, oil derivatives, and gas
  • Construction of new buildings
  • Local transport
  • International transportation services and the supply of transport-related means
  • Supply of educational services; related goods and services to nursery, pre-school, primary, secondary, and higher education
  • Preventive and basic healthcare services; related goods and services
  • The first supply of gold, silver, and platinum after extraction for commercial purposes
  • Supplies and imports of certain medicines and medical equipment
  • Export of goods to outside of states that implemented VAT
  • Export of services to a customer located outside the states that implemented VAT
  • Supply of goods under a customs duty suspension scheme
  • Supply and import of pearls and precious stones (subject to obtaining a certificate)
  • Supply or importation of investment gold, silver, and platinum with a purity level not less than 99% (tradeable on the Global Bullion Market) (subject to obtaining a certificate)

What are Exempted to the VAT?

  • Supply of financial services; except if a direct payment is done (fee, commission, or commercial discount). The Regulations will outline the rules and conditions with regard these services.
  • Supply of vacant land and buildings (lease or sale); this will be subject to the rules and conditions of the Regulations)
  • Importation of the following:
    • Supply of goods exempted or zero-rated in the last country of destination
    • Goods exempted from customs duty (according to the Common Customs Law):
      • Diplomatic exemptions
      • Military exemptions
      • Used personal effects and household items transported by people (either nationals residing outside the country or expatriates relocating to Bahrain)
    • Personal luggage and gifts
    • Necessities for people with special needs

Who Should Attend the VAT Training in Bahrain?

Knowing what VAT is and how to implement it in order to be in compliant with the government is essential for a company to run smoothly. This is why the following members of a company should attend our VAT training in Bahrain:

  • CFO
  • CEO
  • Senior Accountants
  • Chief Accountants
  • Accounting Managers
  • Treasurer & Cashiers
  • Tax Consultants
  • Tax Preparers
  • Staff Accountants
  • Controllers
  • Internal Auditors
  • Procurement Managers
  • Other accounting and finance staff
  • Finance Managers
  • Cost and Budgeting Managers

What is in the VAT Training Program Outline?

The following shows  outline that is included in the VAT courses in Bahrain that we offer in our VAT Training  Program.

  • Introduction – Taxation Law in Bahrain
  • Modifications that needed in the sales invoice
  • Accounting entries required for sales transactions
  • Accounting entries for purchase transactions
  • Modifications that need to be added to the Chart of Accounts (focus on tax input and tax output)
  • Accounting entries for tax returns
  • Tax adjustments
  • Sales returns
  • Purchase returns
  • Sales written of debits
  • Accounting entries for tax paying to the concerned authorities
  • Purchase written of claims
  • Tax filing/declaration
  • Tax filing/declaration for group
  • Inter-company sales
  • Inter-company purchase
  • Difference between tax accounting records and regular accounting records