What is Accounting Diversity & the Reasons for Accounting Diversity?

Let us understand the timelines for registering under VAT and answer some FAQs businesses usually have in this respect.

A Tax return is an official document which all the VAT registered businesses need to submit to the National Bureau for Taxation (NBT).

The domestic reverse charge is a concept in which VAT needs to be paid on reverse charge by the recipient on the domestic supplies.

The supplier of the taxable goods or services needs to charge VAT at 5% and pay it to the government.

The Bahrain VAT law allows the taxpayer to recover the input Tax paid on purchases or expenses if they are incurred for the business purpose.

The format requires less information than a full tax invoice and it will be very useful for retail businesses like Supermarkets, whose customers are primarily unregistered.

It is utmost important for a taxable person to issue a VAT compliant Tax invoice in accordance with the provisions of the Bahrain VAT Law.

VAT registration in Bahrain is in a phased manner and accordingly, the VAT registration due dates are different for different businesses.

One of the immediate requirements for VAT registered business in Bahrain is to issue a VAT invoice.