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GCC - VAT Prepared By: Farooq Zafar, FCCA

VAT – GCC UPDATES – PRINCIPLES OF VAT

.
VAT Supplies & Main Differences
.
Sectors KSA UAE BAH
Food Items:
Basic Food 5% 5% 0%
1
Ready Made Food – Hotel, Restaurant & Café
5% 5% 5%
Supplies

Health Sector: Preventative Treatments Only

Government Hospitals, Clinics, Health Centers 0% 0% 0%
2 For Citizens: 0%
Private Hospitals, Clinics, Health Centers 0% 0%
Non-Citizens: 5%

Education Sector:
Government Schools, Colleges, Universities 0% 0% 0%
3 For Citizens: 0%
Private Schools, Colleges, Universities 5% / 0% 0%
Non-Citizens: 5%

Public Transport Sector: (Passengers & Cargo)

4 Domestic by Road, Sea & Air 5% E 0%
Regional & International by Road, Sea & Air 0% 0% 0%

5 Real Estate Sector:

Land
Sale of Bare Land 5% E E
5a
Sale of Land, Other than Bare Land 5% 5% 5%

Commercial Properties
Sale of Newly Build Commercial Properties 5% 5% 0%
5b Rent of Commercial Properties 5% 5% E
Subsequent Sale of Newly Build Commercial
5% 5% E
Properties

Residential Properties
For Citizens: 0%*
Sale of Newly Build Residential Properties 0% 0%
5c
Non-Citizens: 5%
Rent of Residential Properties E E E
Subsequent Sale of Newly Build Residential Properties E E E

Petrol & Gas Sector:

7
Sold At Shops / Petrol Stations 5% 5% 0%

Financial Sector (Conventional & Islamic):

8 Fee Based Products & Services 5% 5% 5%
Margin Based Products E E E

Insurance Sector:
9 Life Insurance E E E
General Insurance 5% 5% 5%
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* Only First Purchase of Residential Property by KSA Citizen if valued 850,000 SAR & Output VAT 42,500 SAR is Zero, Extra &
Subsequent is Subject to 5%.

BIBF Tax Academy VAT Updates tax@bibf.com WhatsApp 3300 3856

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GCC - VAT Prepared By: Farooq Zafar, FCCA

Turnover & Dates for Mandatory / Compulsory Registration - BAH

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Effective Date of
Turnover Limit in BHD (Annually) Deadline for Registration
Registration
1 More than 5 Million 20th December, 2018 st
1 January, 2019
2 More than 500,000 (500,000 - 5 Million) 20th June, 2019 1st July, 2019
3 More than 37,500 (37,500 - 500,000) 20th December, 2019 1st January, 2020
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Turnover & Dates for Voluntarily / Optional Registration - BAH

Anyone Business may Register Voluntarily in 2019, if is making Taxable Supplies & Last 12 Months
Turnover is More than 18,750 BHD.

VAT Return Filling Aspects - BAH

VAT Return Filling for the Year 2019:

Turnover Limit in BHD Filling Frequency Due Date

1 More than 5 Million Quarterly Within Month After the Quarter
2 Within Month After the 6 Months
500,000 - 5 Million Half Yearly
Period
Half Yearly, If Company Registered Within Month After the 6 Months
Before 1st January, 2019 Period
3 37,500 - 500,000
For First 3 Quarters together, If Within Month After the 9 Months
Registered After 1st January, 2019 Period

VAT Return Filling for the Year 2020:

Turnover Limit in BHD Filling Frequency Due Date

1 More than 3 Million Monthly Within Month After that Month
2 Less than 3 Million Quarterly Within Month After the Quarter
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Tax Invoices
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KSA UAE BAH
Definitive (Complete) Information: Must be in Arabic Can be in Arabic or
Language of English
Translation of Information: Any Language, English
Issued
Invoices Values of Tax Invoice: Any, English 1234567890 or Arabic No Requirement to
١٢٣٤٥٦٧٨٩ Produce Tax Invoice
only in Arabic
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For UAE: VAT Invoice must be issued within 14 Days After the Basic Tax Point.
Timing of For KSA: VAT Invoice must be issued 15th of Next Month After Month of Sale of Basic
Issuance of Tax Point.
VAT Invoice
For BAH: VAT Invoice must be issued 15th of Next Month After Month of Sale of Basic
Tax Point.
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Simplified VAT Invoice
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KSA UAE BAH
When VAT Inclusive Total of the Invoice is Less than 1,000 SAR 10,000 AED 500 BHD
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BIBF Tax Academy VAT Updates tax@bibf.com WhatsApp 3300 3856

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GCC - VAT Prepared By: Farooq Zafar, FCCA

VAT Penalties - BAH

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Type of Administrative Offense Penalty
5% - 25% of the amount due
Late Payment
+
OR
1 Publication of Offender’s Name & Nature of
Late Submission of Tax Return
Offence in Local Newspaper at his / her
(If paid within 60 Days of Due Date)
Expense
Up to 10,000 BHD
+
Failure to Register
2 Publication of Offender’s Name & Nature of
(If within 60 Days of Deadline)
Offence in Local Newspaper at his / her
Expense
2.5% - 5% of Unpaid Tax
+
Incorrect Information Leading to under Declared
3 Publication of Offender’s Name & Nature of
Tax
Offence in Local Newspaper at his / her
Expense
4 Failure to Cooperate with the Tax Authority

5 Failure to Update Registration Details

Up to 5,000 BHD
6 Failure to Display Prices as Inclusive of VAT +
Publication of Offender’s Name & Nature of
7 Failure to Submit Requested Information
Offence in Local Newspaper at his / her
8 Failure to Comply with Tax Invoice Requirements Expense

9 Offences Not Specified Under the Law

Failure to Register within 60 Days of the
10 Deadline
Failure to Pay tax Due within 60 Days of the Due
11 Date

12 Incorrect Input Tax Recovery

3 – 5 Years Imprisonment
13 Presenting Fake Documents +
Penalty Equal to 1 – 3 Times the Tax
14 Recovering Input Tax if Ineligible

15 Not Issuing Tax Invoices

16 Charging VAT on Non-Taxable Supplies

17 Failure to Keep Proper Records

BIBF Tax Academy VAT Updates tax@bibf.com WhatsApp 3300 3856