Bahrain exempted on Tuesday 94 items from the Value Added Tax (VAT).
Minister of Finance and National Economy Sheikh Salman bin Khalifa Al Khalifa affirmed that the Ministry will take all necessary measures to ensure that VAT is not applied on zero-rated goods and services - 94 basic food items in addition to goods and services that support essential sectors - in line with the VAT Law and its Executive Regulations, reported Bahrain’s news agency (BNA).
The minister praised the King’s directive to review the mechanisms of applying VAT during its trial period, which takes into account citizens’ needs through the exemption and non-application of VAT on basic goods and services.
He underscored the ministry’s efforts aimed at bolstering transparency by dedicating resources towards raising VAT procedural and legal framework awareness.
He noted that all registered businesses are required to clearly display their VAT registration prior to levying the 5% tax.
All registered businesses are also legally required to display the final prices of all goods and services - inclusive of tax.
The Tax Invoice should include the full price, followed by the total price to be paid and the amount of tax charged therein as it is a violation to mislead consumers.
