A.

VAT stands for value added tax. It is levied on price of the product or service, at each stage of production, distribution or sale to the end customer.

A person who is resident in Bahrain should obtain the VAT registration in the following cases:

• Value of supplies in previous 12 months exceeds BD 37,500 or
• Value of supplies in next 12 months will exceed BD 37,500.

Threshold limit for registration for VAT in Bahrain is BD 37,500

A nonresideny should register under VAT irrespective of threshold limit, when he make supplies, for which VAT is liable to be charged.

A person can voluntarily seek registration in Bahrain in the following 2 cases:

• Value of supplies in previous 12 months exceeds BD 18,750
• Value of the supplies in next 12 months will exceed BD 18,750.

B.

Output VAT is value added tax on your own sale of goods or services both to other businesses or to ordinary customers.

Output VAT is to be added to each VAT-able item on sales invoices.

Input VAT is value added to the price when you purchase goods or services liable to VAT

Any taxable person, who has registered under VAT can claim input VAT I. E, they could deduct the VAT paid from his or her settlement with the tax authorities.

If the purchases exceed sales, then usually, input tax paid exceeds the output tax and the difference can be negative, which can be credited.

C. NBR has confirmed that employer and employee are related persons for VAT purpose

Tax payer, as per guidelines of NBR can be a person or an organization subjected to pay, pertaining to following guidelines:

• If total income of any individuals, other than female individuals and male individuals above 65 years, retarded individuals and war wounded gazetted freedom fighter during tge income year increases TK 2, 50,000
• If total income of femaletax payer and male senior exceeding 65 years increases TK 3,00,000
• If total income of any retarded individual exceeds TK 3,75,000 and war wounded gazetted freedom fighter exceeds TK 4,25,000
• If any person was assessed of tax in any of the previous 3 years immediately preceding the income year
• If any person runs a business or profession having trade license and operates a bank account
• A person who lives in city corporation/paurashava/divisional HQ/district HQ and owns a motor car/member ship in club registered under VAT law
• Any professional registered
• Member of a Chamber of commerce and industries and trade commerce
• candidate ofpaurashva!/city corporation/upazilla or parliament elections
• Any person who participates in tender
• Any company registered under companies act, 1913or 1994
• Any NGO registered with NGO affairs bureau

If you devide to register for VAT using a tax representative, you may appoint a person resident in Bahrain, duly approved by NBR to act as tax representative, by the way of an official power of attorney.