Bahrain VAT Highlight - Valid Tax Invoice As per Law

As you all know Value Added Tax (VAT) is a form of indirect tax that is applicable to the supply of goods, services, and imports. It is a consumption tax levied stage by stage based on the value-added. A deduction of Input VAT paid on purchases is allowed (with strict criteria) for a set-off with Output VAT collected from sales.

VAT was first introduced in the kingdom of Bahrain by the beginning of 2019. I have resigned from my previous job as a senior accountant and joined the present company as an indirect tax analyst and now concentrates full time to ensure that the company is fully complied as per VAT law.

Based on my experience, I would like to highlight a few points regarding the input VAT recovery. The primary requirement for any company to recover input VAT is the possession of a valid invoice. Here is a small briefing regarding the requirements of various types of invoices under Bahrain VAT law.

Hope this helps. Thanks for spending your time here. Good luck.

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