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Tax & VAT Invoice Format — Bahrain VAT Rules Explained

Introduction​

Following an agreement by the GCC countries to implement a 5% VAT, Bahrain applied this rate on January 1st, 2019. This was later raised to 10% on January 1st, 2022. Certain goods and services are subject to 0% VAT, while others are exempt.

VAT Rates in Bahrain​

  • Standard Rate (10%) — Applied on standard goods and services.
  • Zero-Rated (0%) — Supplies are subject to VAT but at 0%; input VAT may be deducted.
  • Exempt — No VAT is charged; input VAT may not be deducted.
  • Out of Scope — Supplies kept out of the scope of VAT.

VAT Registration​

Mandatory Registration​

Required if annual VATable supplies exceed BHD 37,500.

Voluntary Registration​

Available for individuals or entities with annual supplies over BHD 18,750.

Deregistration​

If a person no longer meets the registration criteria, they must submit a deregistration request on the NBR's portal.

VAT Return​

A VAT return is an electronic form submitted to the NBR by a VAT payer at the end of each VAT period (monthly, quarterly, or yearly).

Tax Invoices​

A VAT invoice must be issued by the 15th of the month following the month the VAT due date was triggered.

Simplified VAT Invoice​

A simplified VAT invoice may be issued when the supply is to an individual unregistered for VAT, or when the supply does not exceed BHD 500 (including VAT).

Required Information on a VAT Invoice​

  • Label "VAT Invoice" or "Tax Invoice"
  • Name, address, and VAT Account Number of the supplier
  • Name and address of the customer
  • Sequential VAT invoice number
  • Date of issue
  • Description of the supply and quantity
  • Value of supply (exclusive of VAT), discounts, and net value
  • Total amount due (inclusive of VAT)
  • VAT rate and amount due
  • Exchange rate (if foreign currency is used)

Penalties for VAT Offences​

Non-compliance with VAT regulations in Bahrain can result in financial penalties. Refer to the NBR's Summary of VAT Executive Regulations for details.