NBR releases Imports and Exports VAT Guide

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VAT information : Bahrain tax

NBR releases Imports and Exports VAT Guide

NBR releases Imports and Exports VAT Guide

Following the implementation of VAT in Bahrain. On 1 January 2019, the National Bureau for Income (NBR) has launched an Imports and Exports VAT Guide on their internet site and in Chaturvedi Associate with vat consultancy services.

This Overview supplies extra details on the VAT ramifications when importing and exporting products and services to/from Bahrain and sets out information for the reverse feed mechanism.  The problems that businesses will require to consider prior to using the zero-rating for export of items and also solutions.

In preparation for the introduction of VAT in Bahrain on 1 January 2019, businesses have been able to register for VAT via the NBR web site over current weeks. They have additionally been preparing their company processes to apply VAT according to the VAT Legislation and also its Executive Laws.

The Imports and also Exports VAT Guide is a welcome action for organizations associated with the import and also export of products as well as services as it supplies. Practical assistance on the VAT system for importing of products, the application of the reverse-charge system for the import of solutions. The problems to be satisfied in order for products as well as solutions to be thought about as zero-rated exports.

The major highlights of the Guide consist of:

When importing products right into Bahrain, a taxable individual with a CR as well as VAT number will be needed to import goods utilizing their CR as well as VAT number.
The deferment of VAT on an import of products will certainly be available. Further information on exactly how to get the deferral will certainly cooperate due course.
When importing services into Bahrain, the reverse-charge device applies when the solutions are offered by a non-resident and also received by a taxable person.

Where a non-resident signed up person gives services to a non-taxable individual in Bahrain. The non-resident should represent VAT. Additionally, when the non-resident signed up person gives services to a taxable person in Bahrain, the reverse-charge mechanism is still suitable and also the non-resident need to provide a tax billing.
For export of items, the indirect export of products will certainly undergo the zero-rate to the degree that all problems laid out in the Overview are fulfilled.

Acquisition of items in the departure location of an airport will certainly be considered as export of products whereas the purchase of items in the arrivals location of a flight terminal will be taken into consideration as a regional supply.
For the export of services, the problems to apply the zero-rated are described, and sensible instances are given to show each of the conditions.
You can access the Imports and also Exports VAT Guide through the web link listed below:


The takeaway

The Imports and Exports VAT Guide is the 3rd overview to be released by the NBR given that the begin of VAT implementation. As well as it is anticipated that additional guides, updates as well as clarifications will certainly be shared over the coming weeks. Organizations must continue to keep track of sales as well as costs and consider their VAT registration responsibilities.

Get in touch for all business queries and vat consultancy services

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