RSM Bahrain

Value Added Tax

Given the overall decline in oil prices in recent years, it has been necessary for the GCC member states to explore other sources of revenue and reduce dependency on hydrocarbons as the main contributor to the public purse. As a result, the GCC member states have signed a unified framework agreement for the implementation of VAT and Excise Taxes. Member states will also implement their own domestic legislation that will govern the introduction of these taxes.

Bahrain has approved the decree law on value added tax (VAT) due to come into effect on 1 January 2019 at the rate of 5%. The VAT law has been issued by the decree law no 47/2018 published in the Official Gazette issue no. 3387.  The executive regulations are expected to be issued within 15 days after its adoption. The provisions of this law shall be deemed binding.

RSM’s specialist team can help you plan a VAT-efficient approach to every aspect of your business to enhance cashflow and minimise risk.

Our services include:

  • Impact assessments
  • VAT registrations
  • Preparing and submitting returns
  • Assessment of specific transactions
  • Advice on VAT compliance
  • Advice on special and complex transactions
  • Support correctly setting up your booking systems (ERP)
  • Support preparing invoice and credit note templates
  • VAT training workshops


Value Added Tax Library

Laws and Regulations

       Download Bahrain Executive Regulations on VAT (EN)

Download Bahrain Executive Regulations on VAT (AR)

     Download Bahrain Decree Law on VAT (EN)

Download Bahrain Decree Law on VAT (AR)

Download GCC VAT Agreement (EN)

Download KSA VAT Law (AR&EN)

Download UAE VAT Law (AR)

Download UAE VAT Law (EN)


An Introduction to VAT

A Guide to VAT in the GCC


Come onboard with an experienced vat skipper and
 get your business armed for the storm




Impact of VAT on the Industrial Sector

18 October 2018
Industry Overview1

Impact of VAT on Logistics and Transport

17 October 2018
Industry Overview1

Impact of VAT on Retail

17 October 2018
Retail Industry Overview1

Bahrain Issues VAT Law Effective 1 January 2019

9 October 2018
Bahrain has approved the decree law on value added tax (VAT) due to come into effect on 1 January 2019 at the rate of 5%.

International VAT Update: August 2018

17 September 2018
Breaking VAT news from RSM's experts around the world, including updates from  Belgium, Poland, United Kingdom, France, United States and Germany   BELGIUM Option to tax being introduced on B2B Property leasing

International VAT Update - November 2017

14 November 2017
Breaking VAT news from around the world, including updates from the European Union, Romania, Hungary, Slovakia, Ireland, Norway and the Gulf Cooperation Council.

Indirect Tax Update - February 2016

16 March 2016
This edition of RSM's EU VAT Group's Indirect Tax Update includes Netherlands, Switzerland, Belgium, France, Hungary, Italy and the UK.   Netherlands Proposed changes in treatment of long term property lease (sale and lease-back)

BEPS - The calm before the storm

16 March 2016
In October 2015, two and a half years of frenetic activity culminated in the release of the final reports of the G20/OECD ‘Action Plan’. These outline the changes necessary to make the international tax framework ‘fit for purpose’ in the digital age.

European Commission presents anti-tax avoidance package

16 March 2016
On 28 January 2016, the European Commission (EC) presented its EU Anti- tax Avoidance Directive, a constituent part of the EC’s Anti- Tax Avoidance Package (ATAP ) which increases tax transparency  and makes for fairer, simpler and more effective corporate taxation in the EU.

How can we help you?

Contact us by phone +973 1753 7787 or submit your questions, comments, or proposal requests.

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