VAT Consultant in Bahrain

Aviaan Accounting is the renowned VAT consultant in Bahrain providing all VAT-related advisory and consultancy services to its clients. Our team takes responsibility of full spectrum business operations and production to ensure VAT is incorporated at each stage of accounting life-cycle. We provide professional advice on:

  • Impact of VAT on businesses
  • Application of protocols and controls for proper tax compliance
  • Implementation of compliant accounting software and systems
  • Registration for taxation purposes in UAE
  • Personnel VAT training
  • Restructuring of the entire supply chain

VAT was implemented in Bahrain on 1st January 2019 as per Decree (48) of 2018 of Bahrain’s VAT Law. It was done in compliance with the commitment of the VAT Framework signed by all GCC member countries in 2017. The framework was used as the primary document used in the development of the VAT law. The law follows majority principles of the VAT framework with few exceptions that are possible. 

The National Bureau for Revenue is the government department responsible for implementation and management of VAT in Bahrain. They shall reimburse the recoverable amount, collect outstanding amounts, and perform audits.  The authority is also responsible for considering and issuing decisions related to grievances related to VAT.

What is VAT in Bahrain?

Value added tax is applied to each stage of the supply chain from production to the final sale of the good or service.  Businesses pay VAT collected from the final consumer to the NBR and recover the output tax paid to its suppliers. 

The supply of goods or services within the scope of VAT will be charged at a rate of 5% unless the goods or services are exempt or zero-rated.  The distinction between zero-rating and exemption is an important one; in both cases, VAT must not be accounted for on the supply, a supplier making exempt supplies is generally not allowed to recover input VAT concerning such supplies. Recovery of input VAT incurred concerning zero-rated supplies is generally allowable.

Preparing for Oman's phased VAT registration

Zero-rated Services:

  • Export of Goods 
  • Supply of Goods to a customs duty suspension regime as stipulated in the Customs Law, and the Supply of Goods under customs duty suspension.
  • Transportation services for passengers and goods from, or to the Kingdom, which begins in, ends or passes through the Kingdom’s territory, including Services and supply of related means of transport.
  • The Supply of preventive and basic healthcare Services and associated Goods and Services.
  • The Supply or import of medicines and medical equipment, subject to coordinating with the concerned medical bodies in the Kingdom. 
  • Re-export of moveable Goods temporarily imported into the Kingdom for repair, restoration, conversion, or processing, including services pertaining to them.
  • The Supply of Services from a taxable Supplier resident in the Kingdom to a Customer not resident in the territory of the Implementing States who benefits from the Service outside the Implementing States territory, subject to the provisions of Article 17 of this Law.
  • The Supply or import of investment gold, silver, and platinum with a purity of not less than 99% and tradable on the global bullion market, on the basis of a certificate issued by the concerned body.
  • The first Supply after extraction of gold, silver, and platinum for trading purposes.
  • The Supply and import of pearls and precious stones, after obtaining a certificate issued by the concerned body for examining pearls and precious stones to determine their nature.
  • The construction of new buildings.
  • The Supply of educational services and related Goods and Services.
  • The local transportation sector
  • Oil, oil derivatives, and the gas sector.
  • The Supply and import of food as stipulated in Clause 1 of Article 31 of the Framework.

Exempt Services:

  • Supply of Financial Services
  • Supply of Bare Land and Buildings
  • Imports Exempt from Tax
    • The import of goods, if the Supply of such Goods in the state of final destination is exempt from or subject to Tax at zero rate.
    • The import of goods exempt from customs duties in accordance with the conditions and controls stipulated in the Customs Law, as follows a) Diplomatic exemptions b) Military exemptions c) Import of personal luggage and household appliances used by citizens residing abroad and foreigners coming to reside in the Kingdom for the first time. d) Import of returned Goods.
    • Personal luggage and gifts which accompany travellers.
    • Necessities for persons with special needs

Why Choose Aviaan Accounting for VAT Services in Bahrain?

VAT is quite a new tax law in Bahrain that was implemented recently. Our team can help with tax assessments and ensure compliance with all articles of the VAT law. We at Aviaan Accounting have a lot of experience with regards to VAT Consultancy; we would make no errors or omissions with taxes, ensure that company stays prepared, and offer valuable tax advice. The benefits of hiring Aviaan Accounting for VAT services:

Reviews and Analysis:

Our team at Aviaan Accounting ensures that all business contracts and documents are thoroughly reviewed and analyzed for proper tax assessment. We help in the hassle-free and on-time filing of VAT returns without errors and omissions.

Training and Resource Allocation:

We ensure that businesses and their employees are well trained about the VAT law and understand VAT return filing. Our team provides essential resources and hardware to meet the business’s VAT preparation needs.

VAT Compliance and Return:

Our team clears doubts and queries with regards to the VAT law and also helps adhere to the VAT return filing process.

VAT Services in Bahrain

Aviaan Accounting VAT Implementation Process

We maintain a sophisticated system of bookkeeping to provide effective VAT services in Bahrain to clients. Here is how our team will implement the VAT in Bahrain:

  • VAT registration with VAT law.
  • VAT deployment impacts on clients’ business reports.
  • Requirements analysis of your business in Bahrain for VAT.
  • Help in Assessment and filing of VAT returns.
  • Assisting in VAT refund processing and claims.

Aviaan Accounting VAT Services in Bahrain

The following are the types of VAT services in Bahrain we offer at Aviaan Accounting:

VAT Consulting:  We help in VAT registration and then the maintenance of records of tax invoices to avoid any penalties.

Agent Appointment for VAT: We provide VAT agents experienced in handling all VAT related queries.

Transition: We help with the VAT tax process transition since we are experienced in working with VAT in different countries.

Compliance: Our team of VAT consultants will help in compliance requirements according to Bahrain VAT law to make sure that the filing of VAT returns is on time.

Preparing and submitting tax returns: Our VAT consultants will help record invoices and file return the right way, and at the right time, to avoid penalty.

Registration of VAT: Our team of VAT consultants helps with online VAT registration with the concerned authorities. It will help clients stay clear of the VAT registration documentation. 

Readiness Assessment of VAT: Our team offers a VAT readiness assessment for businesses.


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