VAT was implemented in Bahrain on 1st January 2019 as per Decree (48) of 2018 of Bahrain’s VAT Law. It was done in compliance with the commitment of the VAT Framework signed by all GCC member countries in 2017. The framework was used as the primary document used in the development of the VAT law. The law follows majority principles of the VAT framework with few exceptions that are possible.
The National Bureau for Revenue is the government department responsible for implementation and management of VAT in Bahrain. They shall reimburse the recoverable amount, collect outstanding amounts, and perform audits. The authority is also responsible for considering and issuing decisions related to grievances related to VAT.