The Kingdom of Bahrain has announced the introduction of Value Added Tax (VAT) effective from 1st January 2019 at a standard rate of 5% with certain supplies subject to a 0% rate and some exemptions.
In compliance with this Government mandate and in accordance with Bahrain’s VAT Law, we would like to inform you that AlBaraka Islamic Bank B.S.C. (AlBaraka) has been registered with the National Bureau for Taxation (“NBT”) for VAT purposes. Therefore, starting from January 1st 2019, AlBaraka will be required to charge and collect VAT on certain services and products in accordance with the VAT Law and its Executive Regulations.
The law provides that prices displayed must be inclusive of VAT, therefore, we will be amending our Service Charges and our terms and conditions accordingly.
For more information regarding the introduction of VAT in Bahrain, please refer to the NBT’s website using the following link: https://www.nbt.gov.bh/laws_regulations