What is the standard rate of Value Added Tax (VAT) in the Kingdom of Bahrain following its adjustment in January 2022?
Answer and explanation
Correct answer: A. 10%
- Step 1: Bahrain initially introduced VAT at 5% on January 1, 2019, in line with the GCC Unified VAT Agreement.
- Step 2: To support post-pandemic fiscal balance and public finances, the National Assembly approved raising the standard VAT rate to 10%, effective January 1, 2022.
Answer
10%.
Why not the others: '5%' was the initial rate from 2019 to 2021, and remains the rate in Oman and the UAE; '15%' is the VAT rate in Saudi Arabia; '0%' applies to zero-rated essential foodstuffs and healthcare, not the standard rate.
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