Everything a Bahrain business needs to know about 10% VAT — who must register, how often to file, what deadlines apply and what your invoices must show.
Bahrain’s standard VAT rate is 10%. It has applied since 1 January 2022, when it doubled from the 5% rate introduced in 2019. Most goods and services sold in Bahrain are standard-rated.
Some supplies are zero-rated — VAT is charged at 0% but you can still recover the VAT on related costs — and some are exempt, where no VAT is charged and the related input VAT generally cannot be recovered. Zero-rating covers areas such as exports and listed basic food items. Check the NBR’s guides for the exact scope of each relief before you apply it.
| Test | Threshold |
|---|---|
| Mandatory VAT registration | Taxable supplies above BHD 37,500 a year |
| Voluntary VAT registration | Supplies or expenses above BHD 18,750 a year |
The mandatory test looks at your taxable supplies over the past 12 months, or what you expect over the next 12. Once you go over BHD 37,500 you must apply to the National Bureau for Revenue within 30 days. Below that, you can register voluntarily if your supplies or expenses exceed BHD 18,750 — which lets you recover VAT on your costs.
Use the Bahrain VAT calculator to check where you stand.
How often you file depends on your size:
The return and the VAT payment are both due by the last day of the month after the period ends. A quarter ending 31 March, for example, is due by 30 April. Returns are filed through the NBR portal.
Late filing and late payment attract penalties from the NBR, so build a few days of review into every period rather than filing on the last day.
A full tax invoice generally needs your name, address and VAT account number, the customer’s details (and their VAT account number if they are registered), a sequential invoice number, the date, a description of what was supplied, the amount before VAT, the VAT rate and the VAT charged in Bahraini Dinar. Simplified invoices can be used for smaller supplies. Keep copies of every invoice you issue and receive — records must be kept for several years and produced if the NBR asks.
The simplest way to keep VAT under control is to apply the treatment as each transaction is recorded, not at the end of the quarter. In ETaxFlow every invoice and bill line carries its VAT treatment, input VAT is tracked as you go, and the return figures are built automatically — with drill-down to the documents behind each number. See Bahrain VAT accounting software.
Bahrain has no general corporate income tax. Oil and gas companies pay a separate income tax, and for fiscal years starting on or after 1 January 2025, multinational groups with consolidated revenue of €750 million or more pay a 15% Domestic Minimum Top-up Tax (Decree-Law No. 11 of 2024). For most SMEs, VAT and payroll contributions are the main compliance tasks — see our WPS and SIO payroll guide.
10%. The standard rate rose from 5% to 10% on 1 January 2022 and has not changed since.
Registration is mandatory above BHD 37,500 of taxable supplies a year. Voluntary registration is possible above BHD 18,750 of supplies or expenses.
By the last day of the month after the end of the tax period. Most businesses file quarterly; those with annual supplies over BHD 3 million file monthly.
The National Bureau for Revenue (NBR). Registration, returns and payments are made through the NBR portal.