Mubasher: The Bahraini government has extended the deadline for the value-added tax (VAT) registration to 26 December 2019 instead of 20 December.

The extension will include businesses that have an annual supply value exceeding BHD 37,500 during the past twelve months or those who will see more than BHD 37,500 during the coming twelve months, Tally Solutions said in a press release on Monday.

Commenting on this, business head for the Middle East at Tally Solutions, Vikas Panchal, said, “The government has taken yet another step to give businesses time to register under the VAT regime. We are confident that the new deadline will be sufficient to help business owners prepare the necessary documents required for their registration.” 

“Businesses that fail to register within their deadlines are required to pay the government BHD 10,000. They also face 3 to 5 years of imprisonment if they do not register 60 days after their deadlines expire,” according to the statement.

Following the UAE and Saudi Arabia, Bahrain is the third country in the GCC to execute VAT in a way to cut its high dependence on oil revenues.

As a leading business software solutions provider, Tally Solutions has supported over 2,000 businesses in Bahrain to be tax compliant through managing accounting, inventory, and achieving tax compliance effectively.