We hate to be the bearers of bad news, but Bahrain has gone ahead with its plans to double VAT from 5% to 10%. The good news is that 94 basic food products and over 1,800 government services are exempted from the VAT. The news may seem like a bummer overall, but this policy is to curb the country's budget deficit and *you guessed it* re-stabilize the economy in a post-Covid-19 era.
Bahrain’s authorities are slapping fines left and right for non-violations of VAT rules. Make sure you file your taxes, people!
Why it matters
Bahrain is not the first GCC country to introduce a VAT system — Oman, Saudi Arabia, and the UAE have done the same. We wonder, who'll be next?
