- Bahrain’s National Revenue Authority has updated its general VAT guide and financial services sector VAT guide
- Changes regarding the taxation of penalties charged by suppliers to customers will take place from November 1, 2024
- All charges are considered liable to VAT unless they are related to indemnification of actual damages
- Charges imposed by banks, such as late payment fees or early termination fees, are subject to VAT at the standard rate
- The guidance includes examples to clarify the rules
- The financial services guide has been updated to clarify VAT rules for interchange fees
Source: answerconnect.cch.com
Read more about updates to the VAT General Guide here and the Financial Service Guide here.
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
