Suppliers will have to charge 5% VAT on standard rated supplies made during this transition period subject to meeting certain
conditions. It appears that the transitional rules are mandatory where the conditions are met and not optional similar to when
the Kingdom of Saudi Arabia increased the VAT rate in 2020. The Bahrain National Bureau for Revenue (NBR) has released
a VAT Rate Change Transitional Provisions Guide and VAT FAQs on the transitional rules (collectively referred to as
Transitional Guidance).
Source: KPMG
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