Group Requirements
✅ All members must be resident in Bahrain
✅ Must be related parties — connected by ownership (50%+), control, or financial interest
✅ One representative member files and pays for the group
✅ Intra-group supplies are disregarded for VAT (no VAT on intercompany charges)
⚠️ Joint and several liability — all members liable for group's VAT debts
💡 When Grouping Helps
VAT grouping is most beneficial when entities within a group make significant intercompany supplies and one or more members make exempt supplies (blocking their input recovery). By grouping, intra-group charges are ignored, reducing the compliance burden and potentially improving partial exemption positions.