English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

A Resident must register when taxable annual Supplies exceeded BHD 37,500 in the previous 12 months or are expected to exceed it in the next 12 months. A Non-Resident has no threshold where that Person is liable to account for Bahrain VAT.

Who should read this?

Business owners, new and existing entities, Non-Residents and finance and compliance teams.

Why does it matter?

The test does not wait for financial year-end and is not confined to January through December. It rolls monthly and has separate historical and forward-looking routes. Delay does not postpone liability and may expose earlier Supplies to VAT.

BHD 37,500Previous or next 12 monthsNo threshold for liable Non-Resident

Current text

The Mandatory Registration Threshold shall be in accordance with Paragraph 2 of Article 50 of the Agreement. The Resident Taxable Person must register for Tax purposes in the following two cases: If the value of their Supplies undertaken in the Kingdom over the previous twelve-month period exceeds the Mandatory Registration Threshold. If it is anticipated that the value of their Supplies made in the Kingdom will, at any time, exceed the Mandatory Registration Threshold during the next twelve months. A Non-Resident Person is required to register in the Kingdom for Tax purposes, regardless of the value of his Supplies, as long as he is obliged to pay the Tax in the Kingdom. As such, he must either register directly, or through the appointment of a Tax Representative following the Bureau’s approval. His Tax Representative shall replace him in all his rights and obligations in accordance with the provisions stipulated in Article 67 of this Law. The Regulations shall determine the rules, procedures and conditions necessary for the application of the provisions of this Article.

Mandatory-registration test

  1. 1

    Calculate annual Supplies included under Article (34) of the Regulations, excluding Capital Assets.

  2. 2

    Test the previous 12 months at each month-end.

  3. 3

    Test the next 12 months using a clear documented business plan.

  4. 4

    Apply within 30 days from the last day of the month of actual excess, or 30 days before the expected excess month.

  5. 5

    For a Non-Resident, identify who is liable for VAT rather than applying BHD 37,500 automatically.

Connected provisions

Direct legislative link

Regulations — Article (33)

Mandatory registration and deadlines

It states BHD 37,500, the two deadlines, effective date, automatic registration and late-registration consequences.

Open connected Article
Direct legislative link

Regulations — Article (34)

Annual Supplies for registration

It defines amounts included in the threshold and the documented forward-looking test.

Open connected Article
Direct legislative link

Regulations — Article (36)

Mandatory registration of a Non-Resident

It requires application within 30 days from the first Supply for which the Non-Resident is liable.

Open connected Article

Official guides and tools

Official page

VAT Registration

Mandatory threshold and registration

Official guide

VAT Registration Guide

Mandatory registration — from the official guidance page

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

Not a January-to-December year

At a 31 August review, the historical test totals Supplies from 1 September of the previous year through 31 August. The next 1 September through 31 August is tested separately as a forecast. At September month-end, both windows move forward one month.

Questions to help you apply it

  • Did included Supplies exceed the threshold in the previous 12 months?
  • Is there documented expectation of exceeding it in the next 12 months?
  • Is a Non-Resident itself liable to account for VAT?