Aqid ERPCalculating 10% VAT
To add VAT, multiply the net price by 0.10. To find the VAT inside a VAT-inclusive total, multiply it by 10 and divide by 110. Bahrain's dinar has three decimals (fils), so round to three places.
| Net price | BHD 250.000 |
|---|---|
| VAT at 10% | BHD 25.000 |
| Total including VAT | BHD 275.000 |
| VAT inside BHD 275.000 (× 10 ÷ 110) | BHD 25.000 |
Who registers
Registration is mandatory when annual taxable supplies exceed BHD 37,500, and voluntary from BHD 18,750.
Returns and payment
Businesses with annual supplies above BHD 3 million file monthly; others file quarterly. The return and the payment are due by the last day of the month after the period ends.
Zero-rated and exempt
- Zero-rated, for example: listed basic food items, local oil and gas, basic healthcare and education services, local transport, and exports.
- Exempt, for example: financial services that carry no explicit fee, and the sale and lease of real estate in most cases.
How Aqid ERP helps
A Bahraini company in Aqid ERP issues bilingual tax invoices in BHD to three decimals and fills the NBR return from its ledger, with each figure traceable to the invoices and bills behind it.