Bahrain: Updated VAT guidance for insurance and reinsurance
General insurance and reinsurance premiums supplied in Bahrain are subject to VAT at 10%, unless zero-rating applies
august 10, 2026
The National Bureau for Revenue (NBR) on August 3, 2026, issued an updated VAT Financial Services Guide, providing additional clarification on the VAT treatment of general insurance and reinsurance contracts.
Key clarifications include:
- General insurance and reinsurance premiums supplied in Bahrain are subject to VAT at 10%, unless zero-rating applies.
- Zero-rating may apply to exported insurance and reinsurance services and to insurance of cargo or passengers in international transport when prescribed conditions are met.
- The VAT treatment of reinsurance contracts is determined by the parties to the reinsurance contract, regardless of the location of the underlying risk or the ultimate insured persons.
- Ancillary fees charged under insurance and reinsurance contracts are generally subject to VAT at 10%, unless they qualify for zero-rating.
- VAT invoices must be issued for both standard-rated and zero-rated insurance and reinsurance supplies.
Read an August 2026 report prepared by the KPMG member firm in Bahrain