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Important update on Bahraini VAT

Important update on Bahraini VAT

An update about the zero rated food items

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The Bahrain Ministry of Finance together with the National Bureau for Taxation (“NBT”) has provided more clarifications on the upcoming introduction of VAT in the Kingdom.

Bahrain’s current VAT system has identified 94 basic food items that are taxable at zero percent (as opposed to the standard rate of 5%). The zero rating of food items is being introduced to provide relief to consumers. Examples of such items include bread, fresh fruits, vegetables and eggs.

The listing of zero rated items has been published with an effective date of January 1, 2019. Retailers are encouraged to revisit the listing (available below for download) and confirm the correct classification of the goods.

For more information, please contact us.

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KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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