11.12.21
VAT rate increase from 5 to 10%
The Council of Ministers in Bahrain has approved an increase in the standard VAT rate from 5% to 10% with effect from 1st January 2022, becoming the highest rate in the Gulf after Saudi Arabia.
The change is made in response to the impact COVID-19 had on Bahrain’s economy and it’s aiming to reboot Bahrain’s Fiscal Balance Programme (FBP).
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