Manama – February 4, 2022:

From January 1 2022, the standard rate of value-added tax (VAT) in Bahrain increased to 10 percent from the previous rate of 5 percent.

Under the new transitional rule, supplies made during 2022 pursuant to a contract signed on or before 23 December 2021 are subject to VAT at a rate of 5 percent until the contract expires, is renewed or is amended (whichever is earliest).

For further clarifications the National Bureau for Revenue (NBR) has released a detailed manual in English for taxpayers:

• VAT return filing manual for tax periods in 2022 (Filing payment and returns).
• A simplified VAT return filing manual applicable for tax periods in 2022.

For addressing any of your queries related to the new manual, get in touch out tax experts.