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VAT on issue of Vouchers in Bahrain

What is Voucher? Vouchers, for the purpose of VAT, are defined as electronic or written instruments, to which a monetary value is attached (face value), and which grant their holder: The right to receive goods or services equivalent to their face value, or The right...

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VAT implication on Government bodies in Bahrain

VAT on supply made by government bodies (including Ministries) Government Bodies includes Ministries, government agencies, institutions and public bodies in the Kingdom. Government bodies and public entities are usually not considered as carrying on an economic...

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Methods of input tax apportionment

The FTA has introduced multiple input tax methods for apportionment of input tax since each business is different and a standard method of apportionment may not be appropriate in each situation. The special input tax apportionment methods which are available to...

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VAT on director fees

As a general rule, services provided by a director are subject to VAT. If fees for services exceed the threshold limit, the director is required to register and charge VAT on director fees Services provided by the director will be taxable if: The director undertakes...

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Impact of VAT on educational institutes

VAT on educational services and related goods and services supplied shall be zero-rated. if supplied by any of the following ‘qualifying institutions’: Nurseries, preschools, and schools Higher educational institutions owned or funded by Federal or local Government....

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VAT on transportation in UAE

For VAT purposes transportation services fall into 3 buckets: Transportation services exempt from VAT VAT at zero rate on few transportations Other transportation services on which VAT is at 5% Zero-rated: Transport services attracting VAT at zero rate. These services...

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Bloggers to pay VAT in UAE

Income generated by bloggers is a mix of sponsored posts, ad networks and affiliate links posted on blogs. Whether VAT is applicable on such services provided by bloggers? Services provided by blogger falls under electronic services. “Electronic services” means...

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VAT on sale discount

After the introduction of the VAT, malls have started a campaign to pay no VAT!!! Heavy discount!!! Get 5% off!!! But is that the case? Contrary to the notion that VAT is not charged on goods sold at discount. Article 39 of the Decree-Law provides, VAT is to be...

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