5% Value Added Tax (VAT) has been levied in the Kingdom of Bahrain since 1 January 2019. The National Revenue Bureau (NBR) is responsible for the implementation and management of VAT in Bahrain by the government agency.
The system is responsible for recording VAT and related responsibilities, validating and reviewing the submitted statements.
The National Revenue Office shall also pay the recoverable amount, collect any outstanding amounts and carry out audits. In addition, it is responsible for considering and issuing decisions on grievances and for monitoring and implementing VAT compliance on a continuous basis.
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
Value added tax is applied at each point of the supply chain from manufacturing to the final sale of the product or service.
The tax is collected from taxable entities registered with the National Revenue Office, where the final customer pays the tax. It is therefore considered to be an indirect tax.
How to plan for this? The rules on VAT can be complicated and the consequences are not always understood. The introduction of VAT requires careful preparation for its performance. Our dedicated VAT team will help you to understand every step of the implementation process.
Our seasoned VAT team in Bahrain, together with foreign VAT experts across the Bitrixme global network, have been advising and implementing strategies to help companies comply with their VAT obligations and minimize VAT liabilities and, in general, for consumers without full VAT recovery.