Bahrain: VAT rate to increase to 10% in 2022
The rate of value added tax will increase to 10%, effective 1 January 2022.
The rate of value added tax will increase to 10%, effective 1 January 2022.
The Shura Council approved legislation that would increase the rate of value added tax (VAT) to 10%, effective 1 January 2022. The last step in this process is approval by the monarch.
Transitional rules that would apply to implement this VAT rate increase are expected to be released by the tax administration, the National Bureau for Revenue. If specific transitional rules for the VAT rate change are not released, it appears that the standard transitional rules (set out in the Bahrain VAT law and executive regulations) when VAT was introduced in 2019 would apply.
Read a December 2021 report [PDF 132 KB] prepared by the KPMG member firm in Bahrain
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