This guide provides an overview of VAT in Bahrain, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Bahrain.
When Bahrain introduced VAT in 2019, it started at 5%, one of the lowest rates globally.
Foreign businesses incurring expenses in Bahrain? You might be eligible for a VAT refund.
No. Like most of the GCC countries, there is only one Bahrain VAT rate.
Bahrain VAT refund claims must exceed BHD 200 for them to be processed.
In addition to the invoices for which a VAT refund in Bahrain is being requested, the following documents would need to be submitted: bank account details, a valid tax certificate, certificate of incorporation of the claimant, completed claim form and documents relating to the entity's appointed agent (if applicable - for example if the business appointed VAT IT to submit the VAT refund application on its behalf).
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