- Bahrain’s National Bureau of Revenue released an updated Imports and Exports VAT Guide on March 2, 2025
- The guide is essential for businesses in international trade, detailing VAT implications for imports and exports
- Section 1.2 clarifies VAT treatment of exported goods, confirming zero-rating if specific criteria are met
- Exports must be shipped outside Implementing States within 90 days and remain unchanged, unused, and unsold
- Suppliers need strong documentation to prove compliance or risk reclassification as domestic supply with 10% VAT
- A new subsection addresses chain transactions, stating only the final supply qualifies for zero-rating if conditions are met
- Prior transactions in Bahrain are taxed at 10% VAT
- Businesses should reassess VAT compliance to ensure correct zero-rating on exports and accurate VAT on domestic transactions
Source: mailchi.mp
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.
