Bahrain publishes value-added tax law

On 9 October 2018, the government of the Kingdom of Bahrain published the Value-Added Tax (VAT) Decree, Law No. 48, implementing VAT on 1 January 2019, for businesses with annual turnover above BHD 37,700 (USD 100,000). Implementing regulations are expected to be published shortly, and it is anticipated that a VAT rate of 5 percent will apply to non-life insurance coverage, including premiums associated with accident, health and critical illness. The law fulfills Bahrain’s commitment under the Gulf Cooperation Council (GCC) Common VAT Agreement that member states would implement domestic VAT rules. Saudi Arabia and the UAE implemented their VAT systems on 1 January 2018.