Effective from mid 2018 it is anticipated that Bahrain will introduce a broad Valued Added Tax (VAT) at a rate of between 3-5%.
Bahrain Introduction of VAT
Who will be affected by the new tax?
All businesses in Bahrain will be affected since VAT will impact most sales of goods and services within Bahrain, where it is anticipated there would be limited exemptions and consumption tax relief. There will be a right for businesses to claim a credit for VAT paid on their expenditures, relating to their business activities.