- VAT (Value Added Tax) Advisory
Effective this 2019, it is anticipated that Bahrain will introduce a broad Valued Added Tax (VAT) at a rate of between 3-5%.
In Global Tax News, last 23rd of January 2017 Bahrain has signed an agreement to implement the US Foreign Account Taxpayer Compliance Act with the United States.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The Intergovernmental Agreement will provide for a simplified framework for Bahraini financial institutions to comply with the US FATCA, through a centralized agency, and remove any legal restrictions on the collection and exchange of the relevant information.
With the current plans of imposing the Value Added Tax (VAT) by the government of the Kingdom of Bahrain, we stand to offer tax services that will help you comply in procedures needed for your business:
VAT IMPACT ANALYSIS
- Impact on Financials
- Impact on Supply Chain
- Impact on Documents & Records
- Impact on I.T. System
- Impact on Transitional Transactions (contracts which starts before implementation of VAT shall be completed after implementation of VAT law)
- VAT Registration
- Changes in I.T. Systems to Make it VAT Ready Before the Effective of VAT Law
- Changes in Documents (Invoices), Reports & Contracts
- Training to Staff
VAT RETURN REVIEW & SUBMISSION
- Review of Transactions for VAT Return
- Preparation of VAT Return
- Reconciliation of VAT Return with Books of Accounts
- Verification of Documents & Submission of VAT Return