Bahrain confirms 2018 VAT
- 01 March 2017 | Richard Asquith
Bahrain has confirmed the introduction of VAT from 1 January 2018. Along with the other five states of the GCC, Bahrain will introduce VAT at 5% to help compensate from the losses on oil duties.
Bahrain will exempt real estate, transport education and health services from the new indirect tax regime. The supply of oil and gas products and transport services will be nil rated, meaning VAT incurred in the cost of production may be reclaimed. It is likely that financial services will be exempted.
The VAT registration threshold will be $100,000 per annum. There will also be a voluntary option for VAT registration for small companies.
As with the European Union, the supply of goods and services to VAT registered businesses in other GCC states will be zero rated, and subject to the reverse charge.
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 invoices...
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 lower...
Bahrain is scheduled to approve the implementation of a 5% VAT in November, in time for an early 2019 launch. The government is looking to...