💡 What is a VAT Group?
Two or more related entities can register as a single VAT person. Supplies between group members are disregarded for VAT — no invoicing, no output tax. The group files one consolidated return.
Eligibility
1. Each member must be a legal person established in Bahrain or have a fixed establishment
2. Members must be related by 50%+ common ownership (economic, financial, or organizational links)
3. Each member must carry on a business activity individually
4. NBR must be satisfied the group will not create risk of revenue loss
Benefits vs Risks
✅ Benefits
• Eliminate intra-group VAT
• Single VAT return
• Better partial exemption ratio
• Reduced admin burden
⚠️ Risks
• Joint & several liability
• Complex exit procedures
• May worsen partial exemption
• Consolidation complexity