Bahrain VAT

VAT in Bahrain

Bahrain introduced VAT at 5% in January 2019, then raised it to 10% in January 2022 — the highest VAT rate in the GCC. Administered by the National Bureau for Revenue (NBR). XiKey applies the correct 10% rate and generates NBR-compliant invoices.

  • 10% VAT (raised from 5% in Jan 2022)
  • Zero-rated: exports, education, healthcare
  • BHD with 3 decimal places (Fils: 1 BHD = 1,000 Fils)
  • NBR-compliant invoice format
  • VAT return preparation
  • Arabic RTL invoices
Bahrain Currency
BHD — Bahraini Dinar
Symbol: د.ب
3 decimal places (1 BHD = 1,000 Fils)

125.750 د.ب
Invoice format example

Bahrain Compliance Requirements

Full support for National Bureau for Revenue requirements

NBR E-Invoicing

Bahrain's NBR has outlined plans for an e-invoicing system. XiKey is architected to support the integration when the NBR e-invoicing platform goes live.

BHD 3-Decimal Precision

The Bahraini Dinar uses 3 decimal places (Fils). XiKey handles this precision correctly in invoices, reports, and tax calculations — preventing rounding errors.

NBR Invoice Requirements

Bahraini tax invoices must include: Supplier name and VAT registration number, invoice date, description of goods and services, taxable amount, VAT rate (10%) and amount, and totals including and excluding VAT.

Bahrain Tax Overview

Item Details
Original 5% Start Date 1 January 2019
Rate Increase to 10% 1 January 2022
Registration Threshold 37,500 BHD (annual turnover)
Return Filing Cycle Quarterly
Highest GCC Rate Yes — 10% (highest in GCC)

Ready to Deploy in Bahrain?

XiKey is ready to run in Bahrain today — 10% VAT, NBR-compliant invoicing, and BHD with 3-decimal precision.

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