VAT in Bahrain

VAT is introduced across the Bahrain from 1 January 2019. Bahrain Government has issued Decree (48) of 2018 Regarding Value Added Tax. The National Bureau for Revenue is the government agency responsible for implementing and managing VAT in Bahrain. The system is responsible for recording VAT and related obligations, validating the submitted statements, and evaluating such matters. The National Bureau for Revenue shall also reimburse the recoverable amount, collect any outstanding amounts, and perform audits. In addition, the authority is responsible for considering and issuing decisions related to grievances and following up and implementing compliance with VAT on an ongoing basis.

The final consumer pays VAT when purchasing any goods or services subject to the tax. In turn, companies pay VAT collected from the final consumer to the National Bureau for Revenue and recover the added value paid to its suppliers.

VAT will not be imposed on the following goods:

  • Basic food products
  • General medical services
  • Passenger transport services
  • Oil and gas sector
  • International air tickets