VAT & indirect tax

The introduction of VAT in Bahrain and across the GCC significantly changed the regional business landscape. As more tax measures emerge, navigating the regulatory and tax environment can be challenging, especially for businesses setting up or expanding in the region. VAT now affects nearly all sales of goods and services within Bahrain, making it essential for companies to understand their obligations.

Globally, VAT and indirect taxes have become increasingly important, particularly for companies operating across borders. Ongoing changes in tax laws and inconsistent regulations across jurisdictions add to the complexity, making compliance more difficult. The COVID-19 pandemic has further complicated supply chains, raising new VAT and indirect tax considerations.

Non-compliance can result in severe penalties, including personal fines for the management, which is why VAT and indirect taxes are now a key focus area for many businesses.

We offer the support you need to meet your VAT and indirect tax obligations.

Typical areas of risk for businesses: 

• VAT groups, especially monitoring the respective requirements (e.g. internal guidelines, changes of managing directors)
• Implications of EU Action Plan, e.g. ‘Quick fixes’ 2020, e-commerce package 2021, final VAT system 2022
• Warehouse concepts and its VAT/customs issues
• Chain transactions, e.g. allocation of ‘moveable supply’, application of triangulation rule
• Importation of goods (e.g. tariff codes, deduction of import VAT)
• Qualification as VAT entrepreneur, especially in holding structures
• Input VAT deduction (e.g. VAT group, holding, valid VAT invoices, pro-rata)
• Sales structures and its VAT implications, e.g. ‘buy and sell’, commission model, agency structure, relationship headquarter and permanent establishment
• Transfer pricing amendments and its implications from a VAT and customs point of view

Our approach  

VAT and indirect taxes are complex, transaction-based, and can significantly impact your bottom line. At Forvis Mazars, we support you throughout the business lifecycle, from initial setup to structuring deals and handling disputes.

Because VAT and indirect taxes often involve cross-border issues, we offer both local and international expertise. In addition to your regular partner responsible for the mandate, you’ll have access to a dedicated VAT and indirect tax specialist who can answer your questions and provide strategic guidance when needed.

Our global network includes tax advisers, legal experts, auditors, and consultants, all focused on indirect taxes like VAT, customs, and excise duties. With offices across Europe and key economic hubs worldwide, we’re well-positioned to help you meet your compliance needs wherever you operate.

Given the evolving nature of VAT laws, shaped by both local legislation and global court rulings, it's crucial to work with a team that stays ahead of changes and helps you navigate the complexities of international tax compliance.

Our services

• Full service advisory services on general or specific customs and VAT issues
• Identifying and managing VAT and indirect tax risks
• Dealing with customs and indirect tax litigation issues due to non-compliance or investigation 
• VAT/customs audit support and VAT/customs scan
• VAT and indirect tax compliance impact on supply chain management and business model optimisation (BMO)
• Advising on VAT and indirect tax issues during the M&A process (incl. due diligences and drafting/checking VAT clauses)
• VAT group cross-check’ – an analysis of your group structure and processes
• VAT risk management concepts, including advisory in terms of tax compliance management systems (TCMS)
• VAT and indirect tax advisory connected with Brexit
• VAT and indirect tax consultancy as interface between VAT/customs law and criminal tax law
• Representation during appeal and finance court proceedings
• VAT advisory services in connection with IT implementations (e. g. review of tax codes, SAP S/4 HANA)
• VAT and customs compliance and outsourcing
• National and international staff training, upon request customised for the various functional areas of your company (e.g. sales, procurement, accounting)
• VAT reviews (‘Health Checks’, ‘Digital VAT Scan’)
• Preparation of (electronic) handbooks, in particular for use at the marketing and sales level (‘conscious contract design’)
• Consultancy in respect to export control compliance
• Assistance with applications for binding tariff information (BTI) and Authorized Economic Operator (AEO)

Our tools & solutions

• VAT comparison tool: Our VAT comparison tool offers our clients the opportunity to gain information of country specific VAT jurisdictions. This enables businesses to get an initial idea of the VAT  
• VAT-ID verifier tool: A fully integrated software solution. We offer you a solution whichever you need: Quickly and personally via our Managed Service, simply and permanently online via our self-service or seamlessly automated through ERP integration. We will help you to find the best solution for you
• Signals/InControl: Our VAT and indirect tax team uses a range of globally accessible tools, e.g. our communication platform Signals and the dashboard InControl
• Customised IT tool development: We appreciate on-going and close contact with our clients. In terms of IT tools and solutions, we focus on developing products on market demand, preferably together with our clients     

Our people  

As VAT and indirect taxes grow more complex, Forvis Mazars’ Global VAT and Indirect Tax Group is ready to support you with fast, practical, and expert guidance.

We take a proactive, solutions-focused approach, especially for industries with cross-border tax challenges like real estate, energy, healthcare, and automotive.

Our experts frequently contribute to publications, speak at industry events, and host conferences that connect clients with professionals, regulators, and peers for valuable insights and networking.

Connect with Forvis Mazars to find out how our expert teams can support your business.

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