Following the publication of the Value Added Tax Law (“VAT Law”) in October 2018, the Bahrain Ministry of Finance (“MoF”) has now released the VAT Executive Regulations. The Regulations provide further details on the application of the VAT Law that will take effect from 1 January 2019 including compliance matters, and the scope of the zero rating and exemptions described at a high-level in the VAT Law.
With very little time until the introduction of VAT, businesses must act now to comply with VAT from 1 January 2019.
The Regulations contain business-friendly provisions designed to minimise the burden of VAT on some taxpayers. Financial services will still be complex and the costs for the real estate sector are likely to increase due to irrecoverable VAT.
Indirect Tax Partner, PwC Middle East
Tel: +973 1711 8886
Indirect Tax Leader, PwC Middle East
Tel: +971 (0) 4 304 3744
Mohamed Al Mahroos
Bahrain VAT Senior Manager, PwC Middle East
Tel: +973 1711 8857