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Bahrain VAT Guide 2026

Bahrain introduced VAT at 5% in January 2019 and doubled the rate to 10% in January 2022. The registration threshold is BHD 500,000 of annual taxable supplies. VAT returns are filed quarterly through the NBR portal.

VAT Rate

10% standard rate on most goods and services. The rate was increased from 5% effective 1 January 2022. Exports of goods and services are subject to 0%.

Registration Threshold

Businesses with annual taxable supplies exceeding BHD 500,000 must register for VAT. Voluntary registration is permitted below the threshold. There is no separate threshold for imports — all commercial imports are subject to VAT at the border.

VAT Returns — Quarterly Filing

VAT returns are filed quarterly within 30 days of the quarter end via the NBR's online portal. Late filing attracts a penalty of BHD 100 for the first month plus BHD 25 for each subsequent month.

E-Invoicing

Bahrain is moving toward mandatory e-invoicing. The NBR has issued guidelines for electronic invoicing and record-keeping. Taxpayers must retain VAT records for 10 years.

Penalties

• Late registration: BHD 500 – BHD 5,000
• Late filing: BHD 100 + BHD 25/month
• Late payment: 2% per month on unpaid tax
• Incorrect returns: up to 100% of tax due

Key VAT Facts

• Standard rate: 10% (from Jan 2022)
• Registration threshold: BHD 500,000
• Filing frequency: Quarterly
• Zero-rated: Exports, international transport, certain food items
• Exempt: Healthcare, education, certain financial services
• Record retention: 10 years