Bahrain’s updated VAT Healthcare Guide (Version 1.2) provides expanded clarification on the VAT treatment of healthcare services, medicines, and medical equipment, including the application of zero-rating, standard rating, and exemptions across different types of supplies and transactions.
Bahrain’s National Bureau for Revenue (NBR) has released Version 1.2 of its VAT Healthcare Guide on 31 March 2026.
The guide explains how VAT applies to healthcare services, medical institutions, and medical products in Bahrain, and includes expanded guidance on the VAT treatment of medicines, medical equipment, and related products.
VAT was introduced in Bahrain with effect from 1 January 2019 with a standard rate of VAT of 5%. With effect from 1 January 2022, the standard rate of VAT was revised to 10%.
VAT treatment in Bahrain
The supply of preventive and basic healthcare services and associated goods and services is zero-rated.
In order to benefit from the zero-rate, the healthcare services must be qualifying medical services provided by qualified medical professionals or qualified medical institutions to a patient during the course of his / her treatment.
Goods and services related to a supply of healthcare services provided to a patient during the course of his / her treatment are also zero-rated.
The provision of healthcare services by government hospitals and medical institutions are outside the scope of VAT when they are provided free of charge.
2. Medicines and medical equipment
2.1. VAT treatment in Bahrain
The supply of medicine, medical equipment, and other medical products included in the list available on the NBR website is zero-rated. The zero-rate applies on all supplies of these medicines, medical equipment, and other medical products throughout the supply chain in Bahrain.
When such medicines, medical equipment or other medical products are imported into Bahrain from outside the territory of the Implementing States, their import is exempt from VAT (i.e., no import VAT is applicable).
A supply or import in Bahrain of medicines, medical equipment or any other medical products that are not included in the lists is subject to VAT at the standard rate of 10%.
Medicines, medical equipment, and other medical products that form an integral part of a non qualifying medical service that are provided together with that service are subject to VAT at the standard rate of 10%, even if such items would normally be zero-rated when supplied on a standalone basis. This treatment applies even where such medicines, medical equipment, or other medical products are used for rejuvenation, wellness, or enhancement purposes (such as energy-boosting or similar treatments). It is therefore important to determine whether the supply of these medicines, medical equipment, and other medical products is made as part of a standard-rated service or supplied independently.
Where non-qualifying medical services are supplied together with medicines, medical equipment, or other medical products, the VATable person needs to assess whether the supply is a “single composite supply” or “multiple supplies” for VAT purposes. As such, the nature of the supply will need to be considered on a case-by-case basis. Where, in the context of providing a non-qualifying medical service (such as cosmetic procedures), the VATable person also supplies a medicine, including medicines or products used for rejuvenation or energy related purposes, this supply would, in principle, be treated as a single composite supply (of cosmetic procedures) for VAT purposes and would therefore be subject to VAT at the standard rate of 10% on the total amount paid for the supply. This is even if the medicine is subject to VAT at the zero-rate when supplied on a stand-alone basis.
On the other hand, if a customer purchases a specific type of medicine, medical equipment, or other medical product from the healthcare provider and, for an additional amount, the seller provides a cosmetic procedure, there would be two separate supplies, one of the medicine (subject to VAT at the zero-rate, assuming it is qualifying for the zero-rate under sections 2.2) and one for cosmetic procedure (subject to VAT at the standard rate of 10%).
2.2. Lists of medicines and medical equipment
The lists of medicines, medical equipment, and other medical products can be found on the NBR website, under the “Healthcare” section of the “ VAT Treatment and Policies” page, and using the following links:
– List of zero-rated – medicines
