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VAT on Director Fee

VAT on the director's fees As a general rule, services provided by a director are subject to VAT. If fees for services exceed the threshold limit, the director is required to register and charge VAT on director fees Services provided by director will be taxable if:...

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Standard rated supplies

Supplies of goods and services by a taxable person in Bahrain are generally subject to VAT in Bahrain at the standard rate of 5%, unless they are specifically subject to VAT at the zero-rate or exempt from VAT. A list of examples of standard-rated goods by sector can...

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Does VAT affect the price charged to customers?

In the retail sector, whether the price of supplies of goods and services is increased by an additional amount of VAT depends on the contract between the supplier and customer entering in Bahrain. If the contract allows adding VAT on top of the agreed price, the end...

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VAT impact analysis

The implementation of VAT is part of Bahrain’s commitment to The Unified Agreement for Value Added Tax of the Cooperation Council for the Arab States of the Gulf, which was signed by all GCC member states in 2016. It is an indirect tax charged on consumption and is...

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VAT on services by Banks in Bahrain

Certain services typically performed by banks and similar organisations in connection with the operation of current, deposit or savings accounts.  Services of operating bank accounts might notably include the following: Provision of debit cards Provision of cheque...

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Import Export under Bahrain VAT

Conditions for export of service under VAT Export of services will attract a zero rate of VAT provided all of the following conditions are met: The customer receiving the service does not have a place of residence in Bahrain. The customer must not be present in...

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VAT on Barter exchange in Bahrain

Barter Exchange is a system of exchange where participants in a transaction exchange goods or services for other goods or services instead of using money as a mode of consideration. Barter exchange may include an exchange of goods in return of services, exchange of...

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Registration by non-resident in Bahrain

A non-resident person is a person who does not have a place of residence in Bahrain by way of a place of business, fixed establishment or a usual place of residence, as defined by the VAT Law. If you are a non-resident taxable person, you must register for VAT in...

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