Small and medium-sized enterprises (SMEs) in Bahrain have been urged to register for value-added tax (VAT) ahead of the December 20 deadline, according to a report.
Vat was introduced in Bahrain on January 1 this year for any companies with taxable revenues of over 5 million Bahraini dinars ($13.29 million).
Businesses earning over 500,000 Bahraini dinars had until June 20 this year to register, but SMEs with revenue between 37,500 ($99,734) and 500,000 Bahraini dinars have until December 20 to register for VAT, according to a report by the Gulf Daily News (GDN) website.
“I urge all SME owners to register with the National Bureau for Revenue (NBR) ahead of the deadline to avoid costly last-minute rush as well as punishments for not registering,” Muharraq Municipal Council member Ahmed Al Muqahawi, was quoted as saying in the GDN report.
“I say this because I find many businesses are either taking it lightly or are unaware of the procedures… The penalty for SMEs who do not register for VAT are three to seven years’ imprisonment and/or fines equal to that of the tax amount, which can go up to three times that amount,” he added.
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