Introduction
With Bahrain's VAT commencing 1 January 2019, the country is
making a significant leap in their economic front. The introduction
is a result of the GCC nation's VAT implementation agreement,
under which, the states should have VAT in place by the start of
2019.
The UAE and Saudi Arabia have already implemented VAT at the
agreed upon rate of 5%, though they are still making additions and
will continue to do so. Examples of this include the UAE's VAT
refund scheme.
Bahrain is already looking to apply incentives and resident
friendly caveats to the VAT, such as exempting personal imports (of
particular value) from VAT.
What is the Exception?
Personal imports and gifts that are brought into Bahrain from
foreign nations will be free of VAT so long as the value of the
goods is below Bahraini Dinar 300. This news was announced by the
Customs Affairs; this entity coordinates with the principal tax
authority in Bahrain, the National Bureau for Taxation.
