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Bahrain extends VAT registration deadline for third phase

Bahrain extends VAT registration deadline for third phase

The deadline has been moved from December 20 to December 26 to enforce better compliance

Bahrain has extended the deadline for the third phase of value-added tax (VAT) registration to December 26 from December 20 to enforce better compliance.

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.

The first stage covered large businesses whose annual supply value exceeded BHD5m. Their deadline was set on December 20, 2018.

For the second phase, businesses with an annual supply value exceeding BHD500,000 were instructed to register from January 1, 2019 until June 20, 2019.

The extension covered the final stage.

Businesses that fail to register within the deadline will be slapped with a fine of BHD10,000. They could also be jailed for three to five years if they do not register 60 days after their deadline expires.

The extension will give companies that are yet to register some more time to comply with the law, said Tally Solutions, a business software provider.

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.”

Bahrain is the third country in the GCC, after the UAE and Saudi Arabia, to implement VAT as part of a plan to diversify its economy away from 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.

Also read: Everything you need to know about VAT in Bahrain

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