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Bahrain Taxation

Bahrain VAT Calculator 2026 (10%)

Bahrain raised its VAT rate from 5% to 10% on 1 January 2022, making it the highest standard rate in the GCC. Add VAT to net amounts, extract VAT from gross prices, check your registration status against the NBR threshold, or aggregate multiple line items into a single invoice.

VAT Calculation

Toggle this only for historical scenarios before 1 January 2022.

Your VAT Breakdown

Enter an amount to see the VAT breakdown.

Registration Threshold Check

Enter your annual taxable supplies in BHD to see whether you must register, may register voluntarily, or fall below the threshold.

Bahrain VAT Categories at a Glance

Standard 10%

Most goods and services supplied in Bahrain. VAT charged, input VAT recoverable.

Retail, restaurants, hotels, professional services, construction (other than new buildings), telecoms.

Zero-Rated 0%

Taxable at 0%. Customer pays no VAT, but the supplier must register and report. Input VAT remains recoverable.

Exports of goods, basic food (NBR 118-item list), healthcare, education, new building construction, domestic transport, oil & gas, investment gold/silver/platinum.

Exempt

Outside the VAT system. No VAT charged, but input VAT on related costs cannot be recovered.

Margin-based financial services, life insurance, residential real estate (sale and lease), bare land.

E-Invoicing Update (2026)

Bahrain's NBR is preparing an e-invoicing framework similar to ZATCA's in Saudi Arabia. As of 2026 it is not yet mandatory — businesses should monitor NBR announcements and prepare their billing systems for a phased rollout.

About Bahrain VAT

Bahrain introduced VAT on 1 January 2019 under Decree-Law No. 48 of 2018, harmonising with the GCC VAT Framework. The original rate of 5% was doubled to 10% on 1 January 2022 (Decree No. 33 of 2021), making Bahrain the GCC member with the highest standard VAT rate. The National Bureau for Revenue (NBR) administers VAT collection, registration, and audits.

Three distinct regimes apply to supplies in Bahrain: the standard 10% rate covers most commercial transactions; zero-rated supplies (such as exports, basic foodstuffs on the NBR list, healthcare, education, and new building construction) are taxed at 0% but still require VAT registration and reporting; exempt supplies (including margin-based financial services, life insurance, and residential real estate) sit outside the VAT system, meaning no VAT is charged and input VAT on related purchases is not recoverable.

Resident businesses must register with the NBR when annual taxable supplies exceed BHD 37,500, and may register voluntarily once supplies exceed BHD 18,750. Non-residents making taxable supplies in Bahrain must register from their first transaction. Filing frequency depends on turnover (monthly above BHD 3 million, quarterly otherwise), and VAT returns are submitted electronically via the NBR portal.

Frequently Asked Questions

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