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Bahrain: VAT regime is effective beginning 1 January 2019

Bahrain: VAT regime is effective 1 January 2019

Measures implementing a value added tax (VAT) system in Bahrain will be effective 1 January 2019. This reflects the kingdom’s commitment to a unified agreement for a VAT regime.


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The lower house on 8 October 2018 passed the VAT legislation, and the upper chamber (Shoura Council) of the National Assembly also approved the VAT legislation. Executive regulations will be issued 15 days after “executive adoption” and will be effective 1 January 2019. 

KPMG observation

With the approaching final steps for implementing the VAT regime in Bahrain, affected businesses will need to consider how to prepare for the introduction of VAT in Bahrain. Additional details about VAT registration and related processes are expected to be released by the Bahrain tax authority.


Read an October 2018 report [PDF 82 KB] prepared by the KPMG member firm in Bahrain

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