Bahrain has extended the deadline for value-added tax (VAT) registration by a week to December 26 to give companies that are yet to register some more time to comply with the law.
The new VAT registration deadline will cover businesses whose annual supply value exceeded BD37,500 in the previous 12 months or will exceed BHD37,500 in the next 12 months.
It is the third stage of VAT registration in Bahrain. The first stage covered large businesses whose annual supply value exceeding BD5 million with a deadline of December 20. For the second phase, businesses with an annual supply value exceeding BD500,000 were instructed to register before June 20.
Vikas Panchal, business head – Middle East, Tally Solutions said: “The government has taken yet another step to give businesses time to register under the VAT regime. We are confident that the new deadline will be sufficient to help business owners prepare the necessary documents required for their registration.”
Businesses that fail to register within their deadlines are required to pay a fine of BD10,000. They also face 3 to 5 years of imprisonment if they do not register 60 days after their deadlines expire.
Bahrain is the third country in the GCC, after the UAE and Saudi Arabia, to implement VAT to reduce its heavy reliance on oil revenues.
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