VAT

Generally, Bahrain follows the terms of the Agreement, including the harmonised standard VAT rate of 5%, but has a wider range of zero and reduced VAT rates to provide subsidies to the less well off in society.


The current rates are:

Rate

Type

Which goods or services

5%

Standard

All other supplies of goods or services, including imports, in accordance with the Unified VAT Agreement

0%

Zero

Basic foodstuffs; domestic and international transport; new properties; healthcare; exports of goods and services; high-value metals; oil and gas; education; and medicine and medical equipment

0%

Exempt

Sale and lease of real estate; and financial services

Ready to see what Avalara can do?

Schedule a demo to see our solution.