VAT Training in Bahrain

The Kingdom of Bahrain (Bahrain) announced its 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 with what you need when it comes to understanding VAT and implementing it in your company. We will provide you with the syllabus and all the materials that you will need for the training. For the whole period, 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.

Download Bahrain VAT Law

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 to your sales invoice, modifications that need to be added to the chart of accounts, the required accounting entries in sales transactions, and many more. For more detailed information, please click here.

There is a list of people who are advised to attend the VAT training in Bahrain to prepare for VAT implementation in Bahrain. These people include CFOs, CEOs, Senior Accountants, Chief Accountants, and a lot more.
Contact us now for a free consultation.

Frequently Asked Questions

What Are the Thresholds in VAT Registration in Bahrain?

Below is the list of thresholds that are for VAT registration in Bahrain. This is by the GCC VAT Agreement (reference: 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 non-resident person is 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 of the law are stated in Article 63 of the VAT law in Bahrain:

Failure to go through VAT registration within 60 days of the deadline for registration
Failure to pay for VAT within 60 days of the deadline for payment
Failure to provide 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 up to BHD 10,000. On the other hand, the failure to give requested information to the tax authority can be up to BHD 5,000.

What Are Subject to VAT in Bahrain?

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 by 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 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 about 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 to be compliant with the government is essential for a company to run smoothly. This is why the following members of the 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 an outline of what 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 paid to the concerned authorities

Purchase written-off claims
Tax filing/declaration
Tax filing/declaration for group
Inter-company sales
Inter-company purchase
Difference between tax accounting records and regular accounting records