Bahrain's Ministry of Finance issued a release on 28 November 2018 announcing that large companies are required to register for value added tax (VAT) before 1 January 2019, which is the date Bahrain's new VAT regime will be implemented. For the first phase of implementation, the registration requirement applies for companies with annual sales exceeding BHD 5 million. The registration threshold is to be subsequently reduced to BHD 500,000 from 1 July 2019 and ultimately to BHD 37,500 from 1 January 2020.
Bahrain's VAT regime is in line with the Gulf Cooperation Council (GCC) VAT agreement, with a standard 5% rate and certain zero-rated and exempt supplies. Zero-rated supplies include:
Exempt supplies include:
Click the following link for the VAT webpage published by the Ministry of Finance for more information.
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