Bahrain Tax Agents & VAT Representatives Guide

The Bahrain National Bureau for Revenue (NBR) has released a guide on tax agents and VAT representatives. The guide provides a general overview of how agents or representatives become authorized by the NBR and in which situations taxable persons can appoint them. It also explains the requirements and procedures for registering as a tax agent or VAT representative and outlines the functions and access rights available to registered agents.

Key Terms and Rules from the Guide

The guide clarifies that a tax agent is a person authorized by the NBR to act on behalf of a taxable person in relation to their VAT or Domestic Minimum Top-up Tax (DMTT) obligations. A tax agent is authorized to prepare and submit tax returns, make enquiries to the NBR, and handle administrative processes like submitting reconsideration requests or filing appeals on the taxable person’s behalf. 

Residents in Bahrain may appoint a tax agent for both VAT and DMTT purposes. However, non-resident taxable persons may only appoint a tax agent for DMTT matters and must appoint a VAT representative for VAT obligations. In particular, non-resident taxable persons who are required to register for VAT in Bahrain may choose to appoint a VAT representative. The representative essentially replaces the non-resident in their relationship with the NBR and assumes responsibility for all obligations towards the NBR.

Notably, taxable persons, whether domestic or foreign, can only appoint a tax agent or VAT representative if the individual or entity has been formally authorized by the NBR. The authorization process varies for individuals and legal entities. The guide further explains what the application process looks like, which documents must be submitted, and which features within the NBR portal agents and representatives can access.

Conclusion

The NBR's guide consolidates instructions for both prospective tax agents and VAT representatives and taxable persons, aiming to clarify authorization standards and digital procedures. Foreign businesses and individuals registering for VAT in Bahrain who are considering appointing a VAT representative may also use these guidelines to verify that the person or entity they intend to appoint is formally registered and authorised to act on their behalf.

Source: Bahrain National Bureau for Revenue