VAT Accounting Services
In our daily life, whenever we buy goods or avail any kind of service, we end up paying Value Added Tax (VAT). Value Added Tax (VAT) is a consumption tax on the use of goods or services and is considered as an indirect tax to be paid by the ultimate customer. Now when it comes to the business front, there exists a receivable and payable VAT. The different types of VAT are: Input VAT, Output VAT.Value Added Tax (VAT) is a consumption tax on the use of goods or services and is considered as an indirect tax to be paid by the ultimate customer. Now when it comes to the business front, there exists a receivable and payable VAT.
VAT Rate in Bahrain
Bahrain is all set to join the league of VAT implementing States in GCC from 1st January, 2019. It will be the third GCC member state after UAE and KSA to implement VAT. While the authorities are working in full swing to implement VAT on 1st January, 2019, it is very important for businesses to understand the VAT concepts and accordingly prepare towards it. In this article, we will understand the structure of VAT Rate in Bahrain.
The standard VAT rate in Bahrain is 5%, levied on all taxable supplies. The following is the structure of the VAT rate in Bahrain. VAT rate in Bahrain is classified into Standard Rate, Zero-rate and Nil rate. The Standard rate of VAT at 5% will be levied on all the supplies barring few which are either zero-rated or exempt from the VAT. The businesses registered under Bahrain VAT are responsible to levy VAT at 5% on all taxable supplies and remit the VAT collected to the government.