Bahraini VAT rates
Bahraini 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:
|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 Bahraini news
Oct 4, 2019
The third and final tranche of mandated businesses are now expected to register for VAT in Bahrain. Businesses with an annual turnover between the VAT registration threshold of BHD 37,500 and...
February 24, 2019
The Bahrain National Bureau for Revenue has published the standard VAT return following the introduction of the 5% consumption tax at the start of 2019.
December 10, 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.
The Ministry of Finance has commented on the planned October 2019 implementation..
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...
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...
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...
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...
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...
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...
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...
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...