Bahrain Updates — June 2026

Bahrain's VAT Landscape in 2026: Exemption Fights, a New Parcel Threshold, and a Free Zone Proposal

Bahrain's VAT system — 10% since 2019, raised from an original 5% in 2022 — isn't seeing structural change in 2026, but it is seeing real pressure on its edges: two separate parliamentary fights over who should be exempt, a new threshold that actually took effect, and a proposal to rework how VAT applies to re-export trade.