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Review Numbers & Money Exchange│ Unit1773.3 Value Added Tax (VAT)VAT is imposed on the import and supply of Goods and Services at each stage of production and distribution, including “Deemed Supplies”.Bahrain introduced VAT on 1 January 2022. The standard rate will be 10%.Certain goods and services will be subject to a zero-rate (0%) of VAT and others will be exempt from VAT.VAT Treatments and PoliciesDifferent types of VAT treatments and policiesare applied depending on the nature of the good or service.►Standard rated items:10% VAT will be applied on these goods and services.►Zero-rated items:Supplies are subject to VAT, but the VAT rate charged is 0%, associated Input VAT may be deducted.►Exempt items:Supplies on which no VAT is charged and for which associated Input VAT may not be deducted.►Out of scope items:Supplies which are kept out of the ambit of VAT.The following sectoins presnt VAT treatment and policies relating to goods and service in Kingdom of Bahrain:RateTypeSupplyZero-RateBasic needsBasic food itemsEducationPrivate deucation servicesHealthPrivate preventative and basic healthcare servicesSpecific medicine and medical equipment Oil and GasDomestic Oil and GasTransport Domestic transportation Inernational transportation Real EstateConstructon services of new buildingsCommodities Precious stonesInvestment gold, silver,and platimumInternational Trade Export of goodsExport of sevicesExemptReal Estate Sales and rental residential and commercial Real EstateFinancial ServicesFinancial services (e.g.interest income generated by the grandting of a loan and the sale of shared)Note:Please refer to Aticle (1) and (53) of the VAT law for futher details.►VAT is an indirect tax on consumer spending. It is collected on supplies of goods and services as well as on imports of goods and services into Bahrain.VAT: