Bahrain eases upfront VAT for importers at entry poi

Importers of essential goods will soon get breathing space on tax payments, after Parliament here approved a measure allowing businesses to defer Value Added Tax (VAT) — a move aimed at easing cash flow pressures and keeping supply chains running smoothly. Under the new system, importers will no longer have to pay VAT upfront at entry points.

Instead, the tax will be settled later through regular filing cycles, giving companies time to sell their goods before making payments. Previously, VAT was collected immediately at key gateways such as the King Fahd Causeway, Khalifa Bin Salman Port and Bahrain International Airport — often tying up working capital at a critical stage of trade.

The change, passed during Parliament’s 26th ordinary session, shifts payments to align with tax filing periods. Small and medium-sized enterprises will typically pay quarterly, while larger firms will settle annually.

MP Abdulwahid Qarata said the reform is designed to improve liquidity for businesses facing pressure from immediate tax obligations. By freeing up cash at the point of import, the measure is also expected to support the steady flow of essential goods into the Kingdom. Officials see the move as part of broader efforts to bolster economic stability and make it easier for companies to operate, particularly at a time when maintaining resilient supply chains remains a priority