VATLive > Blog > VAT > Bahrain confirms 2018 VAT - Avalara

Bahrain confirms 2018 VAT

  • Feb 28, 2017 | Richard Asquith

Bahrain confirms 2018 VAT

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.

Latest Bahrani news
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 invoices...
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 lower...
Bahrain to approve VAT launch Nov 2018
September 28, 2018

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...

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.