Manama, Bahrain: The Bahrain Government has moved the deadline for value-added tax (VAT) registration to the 26th of December 2019 from the 20th of December 2019. Tally Solutions, a leading business software provider, said that the extension will 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 BHD 37,500 in the previous 12 months or will exceed BHD 37,500 in the next 12 months.
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.”
VAT registration is the first compliance activity for all businesses in Bahrain and it is done in three stages. The first stage covered large businesses whose annual supply value exceeding BHD 5,000,000. Their deadline was set on the 20th of December 2018. For the second phase, businesses with an annual supply value exceeding BHD 500,000 were instructed to register from the 1st of January 2019 until the 20th of June 2019. The extension covered the final stage.
Businesses that fail to register within their deadlines are required to pay the government BHD 10,000. 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. It has rolled out the new regulation starting January 1, 2019. Business organisations in Bahrain are mandated to collect VAT and remit the amount to the local tax authorities.
Tally Solutions is a leading business software solutions provider that helps small and medium businesses manage accounting, inventory and achieve tax compliance in a timely and effective manner. It has helped over 2,000 businesses in Bahrain be tax compliant and improve their business efficiency.
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