Bahrain Updates VAT Registration & VAT Transportation Guides

In mid-September, the Bahrain National Bureau for Revenue (NBR) released the updated VAT Registration Guide. The guide was initially released in 2019 and was updated on several occasions. The latest updates have been made to the NRB registration process, VAT registration process, and VAT group registration sections. Additionally, the NBR released an updated version of the VAT Transportation Guide.

Key Updates to VAT Guides

Regarding the changes to the VAT Registration Guide, Section 4 refers to the NBR registration process. With the latest updates, the NBR provided more details on this process as well as a step-by-step guide for taxable persons on how to complete the registration process. To register for VAT in Bahrain, taxable persons must create an NBR account or profile through the NBR portal.

Once this process is completed and the NBR verifies the registration, taxable persons may proceed to the VAT registration process, which is explained in detail in Section 5 of the Guide. As part of the process, taxable persons must answer a Questionnaire to determine if they fulfill the eligibility criteria. From there, the following VAT registration steps include providing the contact details of taxable persons, information on their economic activity, bank details, and other relevant data. 

Finally, the registration guide also provides detailed, step-by-step registration procedures for VAT groups, including details on eligibility to form or join a VAT group, as well as clarification on what the “related” condition refers to. 

Regarding the VAT Transportation Guide, which sets out the general principles of VAT for the transportation sector, the NBR provided additional explanations and examples on what constitutes a means of transportation. Therefore, a qualifying means of transport refers to a vehicle, ship, or aircraft that requires a driver, pilot, or crew and is primarily intended for carrying at least ten passengers or transporting goods for commercial purposes. 

Conclusion

Taxable persons that need or want to register for VAT in Bahrain should examine the VAT Registration Guide to gain more insights into the required data, such as legal name, ID type, ID number, legal status, and form and documents, e.g.,  Commercial Registration Certificate,  for completing the NBR registration and VAT registration process. On the other hand, taxable persons operating within the transportation sector now have more detailed explanations and clarifications on which vehicles and transportation services fall under the scope of VAT. 

Source: VAT Registration Guide, VAT Transportation Guide