Bahrain Updates VAT Guide: Key Changes for Export Zero-Rating and Chain Transactions

• 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.

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