Bahrain: Proposal to increase VAT rate to 10%

Proposal referred to the Council of Representatives for review

Proposal referred to the Council of Representatives for review

A draft amendment proposes to increase the rate of value added tax (VAT) to 10% (from 5%). The proposal has been referred to the Council of Representatives (parliament) for review.

In other news, there are the following VAT developments:

  • The National Bureau for Revenue simplified the process for the disposal of obsolete stock or goods. A taxable person will not be required to adjust input VAT if evidence is provided that the goods have been lost, damaged or stolen.
  • The government will continue to bear the cost of VAT on utilities (electricity and water) after a rate increase.

Read an October 2021 report [PDF 111 KB] prepared by the KPMG member firm in Bahrain

 

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