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Value Added Tax (VAT) in the Kingdom of Bahrain


A 5% Value Added Tax (VAT) has been applied in the Kingdom of Bahrain from 1 January 2019 by the National Bureau for Revenue (NBR) , the government agency responsible for implementing and managing VAT in Bahrain. Certain goods and services will be subject to a zero-rate (0%) of VAT and others will be exempt from VAT.

As a large business or a small or medium business you are required to be registered within the National Bureau for Revenue (NBR) to obtain a registration number and a registration certificate to start collecting the 5% VAT. 

The final consumer pays VAT when purchasing any goods or services from your business that is subject to VAT. In turn, your business pays VAT collected from the final consumer to the National Bureau for Revenue and recover the added value paid to your suppliers. 

Preparing your business

The readiness of your business for VAT depends on its size and the amount of its annual VAT-able supplies. The National Bureau for Revenue (NBR) provides readiness steps for small, medium and large businesses.

If your business have an annual VAT-able supplies that do not exceed 3 million Bahraini Dinars then your business is defined as Small or medium, and are recommended to follow these steps.  

If your business has an annual VAT-able supplies that exceed 3 million Bahraini Dinars then you are defined as a large businesses, and are recommended to follow these steps.  

VAT returns & filing 

As a VAT registered business, you are required to submit details of your business transactions subject to VAT sales and purchases. A VAT Return summarizes the value of the supplies and purchases a VAT payer has made during the VAT period and shows the VAT payer’s Net VAT position.

Registered VAT payers need to file and submit their VAT returns through NBR online portal.

For detailed steps on filing, please refer to the "VAT return filing manual".

If you fail to send the VAT return within the specified filing period then the NBR has the right to estimate your VAT return in accordance with Article (36) of the VAT law (PDF, 56 Pages, 821KB) based on available information.

You can easily settle your business outstanding VAT dues online via the VAT Bill Payment Service. For any suggestions & enquiries you may communicate with the National Bureau for Revenue (NBR)