Bahrain NBR Updates VAT Guide on Transfer of Going Concern, Effective June 2025

• Bahrain’s NBR released updated VAT Transfer of a Going Concern Guide on 15 June 2025
• Guide explains VAT principles on transferring a going concern
• Sale of business assets by VAT registered persons is usually subject to VAT
• VAT applies at the appropriate rate on each asset sold
• VAT Law and Executive Regulations provide rules for VAT treatment when a VATable person surrenders economic activity to another
• If conditions are met, such transfers are outside the scope of VAT
• VAT payers should consult the guide to determine if a transfer qualifies as a surrender of economic activity
• TOGC Provisions prevent revenue loss by ensuring proper VAT claims and payments
• TOGC requires transfer of an economic activity, defined as ongoing activities generating income
• A going concern is operational and has necessary features for continued operation
• Further details on economic activity are in the VAT Economic Activity Guide

Source: nbr.gov.bh

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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