How does VAT work?
The VAT is imposed at each phase of the supply chain, from the production to the final sale of the good or service. When purchasing selected goods or services, consumers pay the VAT cost. In turn, businesses pay the National Bureau for Taxation (NBT) the tax collected from their customers’ purchases and recovers the VAT they paid to their suppliers.
The National Bureau for Taxation (NBT) manages the implementation, administration and enforcement of VAT in Bahrain.
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