As your business evolves, so do your tax obligations. One key area that often gets overlooked is VAT deregistration. In Bahrain, certain businesses may no longer be required to remain VAT registered if their taxable supplies fall below a specified threshold. At BCA Business Consultancy W.L.L, we help businesses not only register for VAT but also assess when and how they can legally opt out through deregistration.

Here’s everything you need to know.

Who Is Eligible for VAT Deregistration?

According to the National Bureau for Revenue (NBR), a business in Bahrain is eligible to apply for VAT deregistration if:

• The value of taxable supplies over the last 12 consecutive months is BHD 18,750 or less,
  AND

• The expected value of taxable supplies or expenses over the next 12 months is also not expected to exceed BHD 18,750.

📌 BCA Tip: This applies to both voluntary and mandatory VAT registrants. But don’t assume you’re automatically deregistered — you must apply and get approval from the NBR.

Source: National Bureau for Revenue – VAT Deregistration Guide

Why Consider VAT Deregistration?

Deregistering from VAT when you’re no longer required to be registered can provide several benefits:

• Reduces compliance burden

• Avoids unnecessary VAT return filings

• Eliminates the risk of incorrect VAT charges

• Streamlines accounting processes for small businesses

However, if done incorrectly or prematurely, it can result in penalties and legal issues. That’s where BCA Business Consultancy W.L.L comes in — we offer expert guidance to ensure your VAT deregistration is handled smoothly and in compliance with Bahraini regulations.

How to Apply for VAT Deregistration

VAT deregistration is not automatic — it requires a formal application submitted via the NBR portal, along with supporting documents that prove your business meets the criteria. The NBR may review:

• Your past 12 months’ taxable supply data

• Forecasted financial figures for the next 12 months

• Reasons for the request

📌 BCA Tip: Work with BCA Business Consultancy W.L.L to ensure your application is error-free, properly justified, and well-documented to avoid delays or rejections.

Source: NBR Bahrain – Deregistration Process

Can I Re-register in the Future?

Yes. If your business grows again and crosses the BHD 37,500 mandatory threshold, you’ll be required to re-register. Voluntary registration also remains an option if your taxable supplies are above BHD 18,750.

Final Thoughts

VAT deregistration might seem like a small step, but it can have major financial and operational implications. Whether you’re downsizing, changing your business model, or simply no longer meeting the threshold, let BCA Business Consultancy W.L.L help you evaluate your eligibility and manage the deregistration process with precision.

📞 Need help with VAT deregistration? Call Biju C Alex at +973 39274567 — your trusted VAT consultant in Bahrain.