Bahrain’s standard rate: 10% since January 2022
Bahrain introduced VAT on 1 January 2019 at a standard rate of 5%, and the rate was changed to 10% with effect from 1 January 2022. The authority responsible is the National Bureau for Revenue (NBR).
Plenty of sites still calculate Bahrain at 5%. One Arabic calculator we surveyed groups Bahrain under its "5%" option and offers no 10% choice at all. If a tool gives you 5% for Bahrain, it is four years out of date.
The NBR states that all goods and services are subject to the 10% standard rate unless they are specifically zero-rated or exempt under the VAT law and its executive regulations.
Why three decimals? Because a dinar is 1,000 fils
The Bahraini dinar divides into 1,000 fils, not 100. Its amounts are therefore written to three decimal places: BHD 12.345 means twelve dinars and three hundred and forty-five fils.
We surveyed twelve online VAT calculators and not one returns a Bahraini figure to three decimals — every one rounds to two, as though the dinar had a hundred fils. One offers a "Bahrain 10%" preset while its currency list contains no Bahraini dinar at all.
The difference in practice: BHD 12.345 plus 10% is 1.235 VAT and 13.580 total. At two decimals it would read 1.23 and 13.58 — figures that will not match books kept in fils.
Adding and removing 10%
Adding: VAT = amount × 10%, total = amount × 1.10. BHD 500.000 before VAT gives 50.000 of VAT and a total of 550.000.
Removing: amount before VAT = total ÷ 1.10, and the VAT is the difference. BHD 550.000 inclusive contains 50.000 of VAT.
Standard-rated, exempt and out of scope are three different things
The NBR distinguishes standard-rated supplies, zero-rated supplies, exempt supplies, and transactions outside the scope of VAT — naming fines and compensation among the latter, along with transactions between branches of the same legal entity.
The practical difference between zero-rated and exempt is input VAT: a business making zero-rated supplies can recover the VAT on its inputs, whereas one making exempt supplies cannot. This calculator does not determine which category your transaction falls into — check with the NBR or a tax professional.
The calculator for each country
Each country has its own page, because the rate, the currency and the number of decimal places differ: the Bahraini dinar and the Omani rial carry three decimals, not two.
Frequently asked questions
What is the VAT rate in Bahrain?
The standard rate is 10%, in force since 1 January 2022. It was 5% from the introduction of VAT on 1 January 2019 until then.
Why does the calculator show three decimals for Bahraini dinars?
Because the dinar divides into 1,000 fils. Rounding to two decimals drops the fils and leaves figures that will not reconcile with accounting records kept in fils.
How do I remove 10% VAT from a Bahraini total?
Divide the inclusive total by 1.10 to get the amount before VAT, then subtract it from the total. BHD 550.000 inclusive is 500.000 before VAT and 50.000 of VAT.
Is every supply in Bahrain taxed at 10%?
No. 10% is the default, but some supplies are zero-rated, some are exempt, and some are outside the scope of VAT altogether. The NBR is the authority on which applies.