Bahrani VAT rates

Bahrani VAT rates

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:

Bahrani VAT rates

Rate Type Which goods or services
5% Standard From 1 Janyuary 2019: 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.

Latest Bahrani news

Bahrain opens VAT registration portal

December 09, 2018

The Bahraini tax office has opened its VAT registration portal for businesses required to be VAT registered. The Gulf state is launching a 5% VAT regime from 1 January 2019.

Bahrain limits VAT to large companies

November 29,2018 

The Ministry of Finance has commented on the planned October 2019 implementation..

Bahrain VAT transition rules

October 13, 2018

Bahrain is to introduce a 5% VAT from 1 January 2019. The following rules will apply to supplies contracted and supplied over the introductory period. Where...

Bahrain 1 Jan 2019 VAT Bill passes

 October 7, 2018

Updated 8th Oct: the parliaments Upper House has passed the Bill tonight. Royal Assent is now a formality within the next week. Bahrain’s parliament...

Bahrain VAT launch by end of 2018

February 23, 2018

The Bahraini Finance Minister has confirmed the Gulf state’s plan to launch a 5% VAT regime before the end of 2018. The implementation date...

Four Gulf states not ready for VAT till end of 2019

February 15, 2018

The International Monetary Fund (IMF) has declared that the Arab Gulf states of Bahrain, Qatar, Oman and Kuwait will not be prepared for the...

Bahrain launches 5% VAT October 2018

January 16, 2018

Newspaper reports claim the Bahraini Ministry of Finance has confirmed that it will launch a 5% VAT regime on 1 October 2018.  Supplies subject...

Bahrain VAT enactment 2018

January 9, 2018

Bahrain has committed to introduce a 5% VAT before the end 2018. The state was one of the six Gulf Cooperation states which signed...

VAT causes inflation?

January 6, 2018

As the first two Gulf states, Saudi Arabia and UAE, join this week the other 160-plus countries with a VAT regime, the old objection...

Arab Gulf VAT live today

 January 1, 2018

Saudi Arabia and the United Arab Emirates (UAE) have today become the two latest states to impose Value Added Tax on their consumers.  From...

Bahrain VAT launch set back

 November 5, 2017

A key parliamentary committee, Financial and Economic Affairs Committee, in Bahrain has rejected latest tax reform proposals, including plans to introduce VAT. The rejected Bill...

Arab Gulf VAT update

October 30, 2017

The six member states of the Gulf Co-operation Council agreed under the Gulf VAT Treaty this year to introduce 5% VAT as a harmonised, VAT...