Bahrain introduced VAT on 1 January 2019 at 5% and raised the standard rate to 10% from 1 January 2022. VAT is administered by the National Bureau for Revenue (NBR).
Who must register
- Registration is mandatory when your annual taxable supplies exceed BHD 37,500.
- Voluntary registration is available below that, from BHD 18,750.
- Your 15-digit VAT account number must appear on every tax invoice.
How often you file
- Monthly, if your annual supplies exceed BHD 3 million.
- Quarterly, for most other businesses.
- The return and payment are due by the last day of the month after the end of the tax period.
What the return covers
The NBR return reports standard-rated sales, sales to registered customers in other GCC states where applicable, zero-rated and exempt sales, imports, and your purchases split the same way, ending with the net VAT due or refundable.
Three-decimal dinars
The Bahraini dinar has 1,000 fils. Keep every amount and every VAT calculation to three decimals so your return, invoices and customers' records agree.
Preparing the return from your books
In SoarLedger, a Bahrain company charges 10% VAT on each line, stores amounts to the fils, and builds a draft laid out like the NBR return, boxes 1 to 17, ready for you to review and file on the NBR portal.
This is general information based on public NBR guidance. Confirm current rates, thresholds and deadlines with the NBR or your adviser before filing.
Written by the SoarLedger team · General information, not tax advice — confirm your obligations with your Chartered Accountant.