Bahrain to Implement VAT by the end of 2018

The Finance Minister of Bahrain, Sheikh Ahmed has confirmed that the country will implement Value Added Tax by the end of 2018. The rate of VAT will be 5% as agreed among GCC countries. As of now, the date of implementation is fixed as October 1, 2018.

Not Ready for VAT till the end of 2019- Bahrain, Qatar, Oman and Kuwait

According to IMF, Bahrain, Qatar, Oman and Kuwait are not prepared to launch Value Added Tax till the end of 2019. As part of GCC countries, all of them had agreed to launch VAT and Saudi Arabia and UAE have already implemented it from January 1, 2018.

Bahrain all set to Launch VAT in October 2018

Bahrain is likely to embrace VAT system from October 2018. The reports on news paper states that the Finance Ministry has decided to implement VAT of 5% from October 2018. The Ministry of Finance also has stated that health care products, education and transportation facilities will be excluded from VAT. The VAT registration threshold is set as $100,000 and the country will be the third member of GCC to implement it.

VAT Enactment of Bahrain

Along with other counties in GCC, Bahrain had agreed to introduce VAT and now the country has announced that it will implement VAT from October 2018. Two nations in the GCC – Saudi Arabia and UAE have implemented VAT from January 1, 2018. Kuwait, Qatar and Oman will follow suit soon.

Is the Gulf ready for VAT?

All the six countries in the GCC agree to implement VAT from January 1, 2018 and only UAE and Saudi Arabia have implemented it as per the agreement and therefore, the question ‘is the Gulf ready for VAT?’ is gaining significance. While Bahrain has stated that it will roll out VAT by the end of 2018, uncertainty pertains regarding the implementation of it in other countries.