News of Bahrain
Bahrain11 January 20191 min read

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

Editorial Team Legacy

Published 11 January 2019, 8:00 · Updated 22:05

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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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