Bahrain’s lower house approves law introducing VAT
Bahrain’s finance and economic parliamentary committee has approved a law introducing VAT on 1 January 2019. Executive regulations – which set out how the law will apply – will be issued imminently. Bahrain’s adoption of VAT – which has been widely predicted and is a GCC commitment – is an important component of the recent economic package signed with Saudi Arabia, Kuwait and the United Arab Emirates. Saudi Arabia, the GCC’s largest economy, and the UAE introduced VAT on 1 January 2018.
Bahrain’s upper house, the Shura Council, is due to meet on 8 October 2018 to discuss the VAT law, as well as other economic-related legislative decrees.
For more information on this important development, please contact a member of Keypoint’s market-leading VAT team.