How VAT is calculated in Bahrain
The most common mistake when working backwards is subtracting 10% of the gross price. VAT is charged on the net figure, so you must divide by 1.10, not multiply by 0.90.
Registration and compliance
VAT in Bahrain is administered by the National Bureau for Revenue (NBR). Registration is mandatory above BHD 37,500 mandatory of annual taxable supplies. Registered businesses charge VAT on sales (output tax), reclaim VAT on business purchases (input tax) and file returns — usually quarterly, monthly for larger businesses.
GCC VAT rates compared
| Country | Standard rate | Introduced |
|---|---|---|
| Saudi Arabia | 15% | 2018 (raised 2020) |
| Bahrain | 10% | 2019 (raised 2022) |
| UAE | 5% | 2018 |
| Oman | 5% | 2021 |
| Qatar | 0% — not yet introduced | — |
| Kuwait | 0% — not yet introduced | — |
Frequently asked questions
What is the VAT rate in Bahrain?
10% standard rate, in force since 1 January 2022 (5% from 1 January 2019). Some goods and services are zero-rated or exempt.
How do I add 10% VAT to a price?
Multiply by 1.10. BHD 1,000 + VAT = BHD 1,100.
How do I remove VAT from a Bahrain price?
Divide the VAT-inclusive price by 1.10. BHD 1,100 ÷ 1.10 = BHD 1,000 net; VAT = BHD 100. Do not subtract 10% of the gross figure — that gives the wrong answer.
Who has to register for VAT in Bahrain?
Businesses whose taxable supplies exceed BHD 37,500 mandatory / BHD 18,750 voluntary registration. Registration is through the National Bureau for Revenue (NBR).
What is zero-rated in Bahrain?
Typically: basic food items, healthcare, education, local transport, oil and gas, construction of new buildings, exports. Zero-rated suppliers can still reclaim input VAT.
What is VAT-exempt in Bahrain?
Typically: real estate sale and lease, certain financial services. Exempt suppliers cannot reclaim input VAT on related costs.
Can tourists reclaim VAT?
Bahrain introduced a tourist refund scheme (via Planet) for eligible purchases exported within 60 days.