The Customs Affairs announced on Sunday that the personal imports and gifts for individuals worth less than BD300 would be exempted from the Value Added Tax (VAT) as part of the coordination and cooperation with the National Bureau for Taxation.
This announcement came as part of the explanation of taxes, the administration fines linked to VAT implementation and the methods of its calculation, of either 5% or 0%.
Earlier this month, Bahrain’s Ministry of Finance announced that VAT will be introduced in a phased manner through transitional mandatory registration thresholds, consultancy PwC revealed.
According to the regulations, businesses earning over BD5m ($13.2m), will have to be registered by January 1, 2019, while those making over BD500,000 ($1.3m) and BD37,500 (over $99,730) have to be registered by July 1, 2019 and January 1, 2020 respectively.
Businesses below the mandatory registration thresholds for 2019 are not required to register next year while those wishing to voluntarily register in 2019 must exceed the voluntary registration threshold of BD18,750 ($49,860).
Large businesses will file tax returns on a monthly basis and all other businesses will file quarterly. However, for 2019, registered businesses will have only three or four tax periods, depending on turnover. Tax returns will be due on the last day following the month of the end of the tax period.
Bahrain’s VAT law also sets out a number of differences from the VAT laws that have been already been implemented in Saudi Arabia and the UAE.
Source Credit: BNA