Bahrain VAT / Sales Tax
Detailed vat / sales tax rates and rules for Bahrain in 2026.
Bahrain introduced VAT at 5% on January 1, 2019, and increased it to 10% on January 1, 2022. VAT applies to most goods and services. Essential items including basic food, healthcare, education, and real estate (first sale of residential property and residential rent) are zero-rated or exempt. Financial services are generally exempt. Bahrain was the third GCC country to implement VAT after Saudi Arabia and the UAE.
Standard Rate
10%
Registration Threshold
BHD 37,500 annual turnover (mandatory); BHD 18,750 (voluntary)
Reduced Rates
How Bahrain VAT / Sales Tax compares
Bahrain’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
