The value of annual Supplies must include, for the purposes of registration, the following:
- The value of Taxable Supplies of Goods and Services, with the exception of the value of Capital Assets
- The value of Deemed Supplies
- The value of Intra-GCC Supplies which would have been taxable if made in the Kingdom
- The value of annual Supplies made by Related Parties, where the conditions as set out in “registration of related person” are met
- The value of Goods and Services supplied to the Taxable Person who is liable to pay the Tax due
Taxable supplies excluding capital assets
The value of your supplies of goods and services made in Bahrain (i.e. your supplies subject to VAT at the zero-rate or standard rate), including your deemed supplies but excluding the disposal of your capital assets.
The Taxable Person is deemed to have performed a Supply where the Taxable Person deducts the Input Tax relating to the Goods and Services (where the input tax credit is claimed) referred to in the following cases:
- The use or surrender of Goods forming part of his assets for purposes other than carrying out Economic Activity.
- Changing the use of Goods for the purpose of making non-Taxable Supplies.
- Retaining Goods on the date of deregistration despite the cessation of Economic Activity.
- The disposal of Goods free of charge, unless used as samples or gifts for the purposes of his Economic Activity within the threshold.
- Providing Services without Consideration
When Bahrain and other GCC member states recognize each other as the Implementing States for VAT purposes, the value of your Intra-GCC supplies to another Implementing State which would have been subject to VAT in Bahrain if made in Bahrain will need to be added to the above to determine if you are above the mandatory registration threshold. However, this is not applicable until further notice.
Value of taxable supplies of goods and services made by related persons
The value of the supplies of goods and services (computed as above) made by related persons should also be added together when computing the mandatory VAT registration threshold.
For the purposes of VAT, persons are considered as related where one has the authority to direct and supervise the other(s), where he holds an administrative authority enabling him to influence the work of the other person(s) from a financial, economical or organizational perspective. This includes persons under the authority of a third person who may influence their work from a financial, economical or organizational perspective.
If this combined value exceeds the mandatory registration threshold in cases where a business has been segregated to avoid a mandatory VAT registration, then all of the related parties must register for VAT (even where each of them, taken on a stand-alone basis, do not meet the mandatory registration threshold).
Goods and services supplied to you accounted for under the reverse charge
The value of the goods and services supplied to you and for which you are liable to account for VAT in Bahrain under the reverse charge mechanism.
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