Bahrain-Introduction of VAT
Following on from Saudi Arabia and UAE in 2018, the Bahrain parliament has approved the introduction of VAT in the country from 1 January 2019. The VAT legislation has been released and is based upon the GCC VAT framework, with a standard rate of 5%.
A mandatory threshold of BHD 37,700 exists for resident businesses, whilst there is a zero threshold for non-resident businesses.
Detailed executive regulations should be released shortly.