VAT haul grows past BD 600m on trade activity

TDT | Manama

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Annual VAT collections rose by around 10.2% to BD 603m in 2024, from BD 547m in 2022., according to figures released by the National Bureau for Revenue (NBR).

The data was disclosed in a parliamentary reply to MP Abdulwahid Qarata.

The bureau said VAT in Bahrain is administered through a fully digital system, covering registration, return filing and payments.

The largest share of VAT revenue came from the wholesale and retail trade sector, followed by financial and insurance activities, accommodation and food services, information and communications, professional, scientific and technical activities, and administrative and support services.

The NBR noted that several sectors are zero-rated, including healthcare services, medicines and medical equipment, education, domestic and international transport, and services related to the construction of new properties. Many basic food items also fall under the zero-rated category.

It added that the sale and lease of residential and commercial real estate are exempt from VAT, while sovereign government services provided by state entities fall outside the scope of the tax.

Examples of zero-rated or exempt items include 94 basic food products, healthcare and education services, medicines and medical equipment, construction services for new properties, the sale and lease of homes and commercial units, precious stones, investment-grade gold, silver and platinum, core financial services, oil and natural gas, and local and international transport.