Bahrain-GCC: VAT Framework Agreement signed by Bahraini Finance Minister

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The Gulf Cooperation Council (GCC) VAT Framework Agreement has been signed by the Bahraini Finance Minister on 1st February 2017. This agreement imposes 5% VAT on the supply of in the GCC region. But this rate will be not applicable on particular basic food stuffs, medicines and medical equipment. It is expected that these items will be zero rated rather than exempted. Each of the GCC member states need to be ratify a domestic VAT law for implementing the announced VAT 2018. The agreement will become in effect only after being enacted and published in the official gazette and the mechanism of ratification is deposited with the GCC Secretariat.

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