National Bureau for Revenue publishes B2B e-invoicing tender
The Bahraini tax authority, The National Bureau for Revenue (NBR), is completing the design and build of a nation-wide B2B electronic invoicing system. This includes the design of IT architecture cybersecurity, project management and development. It is possible that a phased B2B mandate will be announced for the end of 2025 or start of 2026.
The NBR has been organising a serious of consultations and workshops with major businesses around launch plans for electronic invoicing. This will be review potential technical standards, launch planning and to review the benefits for businesses.
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2022: Taxpayer invoicing mandatory survey signals plans for e-invoicing
The Kindgdom of Bahrain’s National Bureau for Revenue has launched survey to estimate the volumes and natures of VAT invoicing in the Arab Gulf island. Thins includes taking a mandatory questionnaire on invoicing pattern volumes and the use of e-invoicing. This information is likely to be used in the preparations for the introduction of electronic invoicing.
This could include Continuous Transaction Control model (see below) which would oblige VAT registered business to live report their sales invoices to the NBR prior to them becoming valid for forwarding their customers.
CTC e-invoicing and real-time models
| Invoice reporting model | Examples | Features |
| 1. Central platform exchange | Italy, Turkey | Platform responsible for invoice forwarding to customer |
| Customer or receiver may review and reject invoice | ||
| 2. Central clearance | Govt platform accepts invoices, validates, and buyer acknowledges invoice | |
| Brazil, Colombia | Pre-clearance variation - clearance before invoice exchange | |
| Chile, Costa Rica | Post-clearance - clearance short time after exchange | |
| Document types not regulated and therefore inconsistent and may resort to email and similar | ||
| 3. Decentralised clearance | Mexico, Guatemala, Peru, France | Certified e-invoice agent (PAC) submitts inoices |
| Document types not regulated and therefore inconsistent and may resort to email and similar | ||
| 4. Real time digital reporting | Spain, Hungary, South Korea | Invoice listing submitted immediately after invoice issued |
| No acceptance or regulation of invoice by tax authorities |
Arab Gulf e-invoicing gathers pace
The 2023 Oman e-invoice plans are likely to start with a voluntary phase and is in the course of vendor selection process. Saudi Arabia e-invoicing was introduced in December 2021. UAE electronic invoicing may commence before 2023.
The six Arab Gulf states agreed to implement VAT in 2017. So far, only Kuwait and Qatar have failed to do so. Bahrain introduced VAT in January 2019.
