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Bahrain Tax Information

10% VAT

VAT is 10%. Registration required above BHD 37,500 turnover. No personal income tax.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Bahrain

VAT registration
CR number
Client details
Invoice number
VAT (10%)
Total in BHD

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

ImmediateNet 30Net 60Net 90

Payment Methods in Bahrain

Bank TransferBenefitPayNBBBBKCredit Card

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Bahrain?

Bahrain has 10% VAT. VAT is 10%. Registration required above BHD 37,500 turnover. No personal income tax.

What payment methods are common for contractors in Bahrain?

Common payment methods in Bahrain include: Bank Transfer, BenefitPay, NBB, BBK, Credit Card. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Bahrain?

Your invoice should include: VAT registration, CR number, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Bahrain's VAT rate?

Bahrain applies 10% VAT, introduced in 2019. Lower than UAE/Saudi 15%. Zero-rated for exports.