VAT Implementation

With the VAT implementation in Bahrain from 1st January 2019 onwards, all companies are required to register and comply with all the VAT requirements. VAT is an indirect tax which is charged at every level supply of goods or services or both. All businesses need to take necessary steps for VAT implementation in Bahrain. The challenge for the business community in Bahrain is to understand the new VAT Law and to comply and implement in their business.

We, SuaveBesto Accountants offer support to the businesses for VAT implementation in Bahrain. Our tax specialists will help you to plan an effective approach in every aspect of your business and minimize the risk and thereby eliminating penalties due to non-compliance of VAT Law.

Steps involved in VAT Implementation Services:

We believe that the businesses should be guided properly for VAT implementation in Bahrain to comply with Bahrain VAT law and develop a sustainable tax strategy. The procedure for effective VAT implementation is as follows:
  • Understand the business model:
    The TAX experts/ VAT Experts visit your office to understand the business model for designing a VAT Implementation plan which suits for the Bahrain VAT Regulations for your business.
  • Training to the Management & Employees:
    In this phase, we provide training on the concepts of VAT in the Bahrain & discuss about the business type & its issues on compliance to the Bahrain VAT Law. Provisions shall be made to train the employees from each department having implication on VAT.
  • Analyzing the impact of VAT on your business:
    In order to have a better clarity and appraisal for the management and to streamline the operations of the company by complying with the Bahrain VAT requirements, we study the impact on business on working capital, costing and profitability.
  • Identifying a VAT team leader and VAT Implementation Project manager:
    For shifting the transactions into Bahrain VAT compliance and to function smoothly and in a timely manner, we will select a responsible person/team from the company to be the head of the VAT Implementation project called VAT Implementation Project Manager.
  • Registration for VAT:
    As part of VAT implementation, to comply with the law of the land with respect to VAT (Bahrain VAT Law), we advise regarding the procedural formalities and the date by which registration has to be made, considering whether the company got any exemption in this respect or not, whether the group registration or standalone is more apt etc.
  • Accounting systems under VAT
    The present accounting systems will be scrutinized. Proper classification/ grouping with appropriate chart of accounts suitable for VAT regime will be suggested. Necessary guidelines will be given to the accounts team for preparing the first VAT return to the National Bureau of Revenue (NBR).
  • Invoicing under VAT
    The requirements of VAT invoicing (and issuance of credit note) under the Bahrain VAT Law will be implemented. Proper guidance will be given to the IT persons and proper training to the Accounts and other departments connected to sales will be given.
  • IT Migration
    In order to incorporate the changes in the billing, accounting and other administrative procedures to comply Bahrain VAT formalities, necessary guidance or information required will be communicated to the IT team/software personnel either directly or through VAT Implementation Project Manager.
  • Filing of Return VAT Return
    The support for preparing and filing of the first VAT return by taking the correct input tax credit against the total VAT liability with guidance on planning/better timing of cash flows.
Suave Besto Auditors are specialized in VAT Implementation in Bahrain. We support the client by conducting training & advising them on the impact of VAT on their business. We provide VAT implementation services around the Emirates.