- 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.
