Bahrain introduced its value added tax (VAT) system in 2019, following the framework of the Gulf Cooperation Council (GCC) Unified VAT Agreement. It was the third GCC member state to implement VAT after Saudi Arabia and the United Arab Emirates.
Bahrain’s VAT system is governed by the Value Added Tax Law (Decree Law No. 48 of 2018) and its Executive Regulations, administered by the National Bureau for Revenue (NBR). The NBR is responsible for issuing guidance, handling registrations, collecting VAT, and ensuring compliance with local obligations.
Businesses making taxable supplies in Bahrain must comply with VAT requirements, including registration, applying the correct VAT treatment, maintaining proper records and invoices, and submitting periodic VAT returns. Bahrain’s standard VAT rate is 10%, though certain supplies remain zero-rated or exempt under local legislation.
