VAT in Bahrain

VAT in Bahrain is run by the National Bureau for Revenue. Its VAT overview states that VAT started at 5% on 1 January 2019 and that the standard rate has been 10% since 1 January 2022. Under the NBR’s registration rules, a resident business must register once its annual VATable supplies exceed BHD 37,500 and may register voluntarily above BHD 18,750. A non-resident has to register within 30 days of its first VATable supply to a person in Bahrain who is not subject to VAT, whatever its turnover.

The NBR’s filing page sets monthly periods above BHD 3 million of annual VATable supplies and quarterly periods below that, and returns are due by the last calendar day of the month after the period ends.

Ask a firm whether it will open your NBR profile and file each return, how it matches the VAT account to the ledger, and how it treats imports and sales to customers outside Bahrain. If you sell from abroad before setting up a company, ask about the 30-day rule first.

Twenty-nine firms on Accountanty offer VAT in Bahrain: 20 accounting firms, eight corporate service providers and one law firm. Eleven focus on foreign clients, and one declares accreditation as a VAT tax agent. Tax compliance in Bahrain covers the rest of the picture.

Firms offering VAT in Bahrain

5 more firms offering VAT in Bahrain

Frequently asked questions

What is the VAT rate in Bahrain?

The National Bureau for Revenue states that the standard rate has been 10% since 1 January 2022. Some supplies are zero-rated, so ask your adviser how each of your products or services is treated.

When must a company register for VAT in Bahrain?

A resident business must register once its annual VATable supplies exceed BHD 37,500, and can choose to register above BHD 18,750. A non-resident selling to people not subject to VAT has 30 days from its first such supply, whatever its turnover.

Can a small business file VAT returns once a year?

The NBR says a resident with less than BHD 100,000 in total annual supplies that is not part of a VAT group may apply for annual periods, subject to its approval. Others file monthly or quarterly depending on turnover.

Other services in Bahrain

Accountants by city in Bahrain

Setting up a company in Bahrain: the guide and every firm

General information, not legal or tax advice. Rules, rates and fees change: check them with the official sources linked on this page or with a qualified adviser before you act.