Bahrain VAT Guide for 2026: Rates, Registration & Compliance
Bahrain's standard VAT is 10% after the 2022 increase. This guide covers registration thresholds, taxable scope, and filing with the NBR.
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Key Takeaways
Bahrain applies a standard 10% VAT to most goods and services, including digital supplies, raised from 5% in January 2022. Exports, international transport, basic food, healthcare, education, and new residential construction are zero-rated, while certain financial services and bare land are exempt. SaaS and digital services supplied to Bahrain customers are taxable at 10%.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Groceries
Zero-rated
Sales Tax Rates
Bahrain applies a standard 10% VAT to most goods and services, including digital supplies. The rate rose from 5% to 10% on 1 January 2022.[1] A 0% rate covers exports, international transport, and specified sectors, and some supplies such as certain financial services and bare land are exempt.[1] The tax authority is the National Bureau for Revenue (NBR), and VAT has applied since 2019.[1]
Rate | Applies to |
|---|---|
Standard 10% | Most goods, services, digital supplies |
Zero 0% | Exports, international transport, basic food, healthcare, education, oil and gas, new residential construction |
Exempt | Certain financial services, sale or lease of bare land and real estate |
Registration & nexus threshold
Registration is mandatory when annual taxable supplies exceed BHD 37,500, with voluntary registration available from BHD 18,750 [1]. Non-resident businesses making taxable supplies in Bahrain must register regardless of turnover and account for 10% VAT on digital and electronic services supplied to Bahrain customers, appointing a tax representative where required [1].
Filing frequency & deadlines
VAT returns are filed through the NBR portal. Businesses with annual taxable supplies of BHD 3 million or less file quarterly, while those above BHD 3 million file monthly. Returns and payment are due by the last day of the month following the end of each tax period.[1] Bahrain has no mandatory e-invoicing regime yet; the NBR is developing a framework but has not confirmed a start date.[2]
Exemptions
Exports, international transport, basic food, healthcare, education, oil and gas, and construction of new residential buildings are zero-rated. Certain financial services and the sale or lease of bare land and real estate are exempt.[1] SaaS and digital services supplied to Bahrain customers are taxable at 10%.[1]
Bahrain has no US-style resale certificates. A VAT-registered business recovers the input VAT it pays on purchases and imports by deducting it from output VAT on its return, provided the purchases support taxable supplies and valid tax invoices are held [1]. Net VAT payable equals output VAT minus deductible input VAT.
Penalties
Late registration carries a penalty of up to BHD 10,000. Late filing or late payment is penalized at 5% to 25% of the VAT due.[2] More serious offenses, including tax evasion, carry higher administrative fines and potential criminal penalties under the VAT Law (Decree-Law No. 48 of 2018).[2]
The NBR reviews returns and can open audits, request records, and issue assessments where VAT is under-reported [1]. A taxpayer who disagrees with an assessment may file an objection with the NBR and, if unresolved, escalate through the appeal channels set out in the VAT Law and its executive regulations [1].
Sources
[1] National Bureau for Revenue (NBR), Value Added Tax in the Kingdom of Bahrain, https://www.nbr.gov.bh
[2] National Bureau for Revenue (NBR), List of Zero-rated Basic Food Items, https://www.nbr.gov.bh/media/basic_food_list_en
Verified July 2026 against National Bureau for Revenue (NBR) guidance.
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