The appointment of a fiscal representative for non-resident companies is mandatory in Bahrain, and optional for other businesses and people supplying VAT-taxable goods and services. The National Bureau of Revenue (NBR) is in charge of the authorization of such representatives.
Below, our company formation agents in Bahrain have created a guide on the appointment of a VAT or tax agent. You can also count on us for such a service.
Services provided by a fiscal representative in Bahrain
A fiscal representative is also known as a VAT agent, as this is usually a person/entity who has been granted permission by the NBR to represent a taxable party with regard to the tax and VAT obligations to the NBR.
Among the services provided by a Bahraini tax agent are:
- registering for VAT;
- preparing and submitting VAT returns to the NBR;
- filing VAT appeals and reconsideration requests to the NBR on behalf of the taxable person;
- making various types of inquiries to the NBR on behalf of the taxable person.
A taxable person with residency in Bahrain may choose to designate a VAT agent to handle his VAT duties on his behalf. However, this is an optional service.
Our lawyers in Bahrain are at your disposal if you want to incorporate a company in Bahrain and register it for tax and VAT.
Who can provide fiscal representation services in Bahrain?
Both natural and legal persons may apply to become VAT agents or representatives in line with the Bahrain VAT legislation, provided they fulfill all of the requirements listed below:
- they must be residents of Bahrain;
- they must be persons of good moral character and reputation who have never been convicted of a crime against honor or had their freedom restricted;
- in the case of natural persons, they must be individuals with a university degree, accounting degree, or legal qualification that have been verified and approved by the Ministry of Education;
- a legal person (partnership/company) must carry out the proposed VAT agency/ representative services under a current, authorized commercial registration.
A certificate and a special VAT registration number will be issued to the approved VAT agent or representative, and the authorization is valid for 3 years and can be renewed.
A VAT representative will be the NBR’s initial point of contact for any queries or audits, and he or she will be equally accountable with the taxable person who appointed him for payment of any VAT (including penalties) owed to the NBR.
Feel free to address our Bahraini company formation agents if you need information on the appointment of a fiscal representative.
Fiscal representation for digital service providers in Bahrain
In the case of e-commerce companies, the main applicable condition to complete VAT registration within a month from starting the sales. For digital services, there is an application process for a simplified VAT registration that does not allow for the deduction of any local VAT paid.
Designating a Bahraini fiscal representative is not necessary, while the appointment of a local tax agent is optional.
VAT returns filing requirements in Bahrain
Here is the calendar for filing VAT returns in Bahrain:
- monthly for companies with taxable revenue of at least BHD 3 million (approx. USD 797,700) annually;
- quarterly for companies with annual taxable revenue of less than BHD 3 million;
- annually for entities with taxable turnover less than BHD 100,000 (approx. USD 26,590), however, this is an option, as such businesses can also choose to file quarterly or monthly returns.
If you need a fiscal representative in Bahrain, do not hesitate to contact our local agents. You can also rely on us for immigration services in Bahrain.