VAT impacts different economic sectors in different ways. Since the Bahrain VAT Law allows for zero-rating of qualifying medical services, healthcare service providers must carefully examine all their supplies to ensure that appropriate VAT treatment has been assigned. Specialist hospitals who allow other medical professionals to use their facilities and equipment for a fee are generally not considered as supplying qualifying healthcare services and therefore, the VAT implications should be considered for such arrangements. Further, pharmacies in Bahrain are expected to assign VAT treatment to medicines based on their Drug Registration Number (DRN) and medical supplies based on their HS code. They may also be required to submit their sales and purchases data classified based on DRN or HS codes in case of a VAT audit.
Our healthcare VAT specialists will assist you to navigate through the complexities and challenges by providing the right advice with practical solutions to the challenges faced by this sector.