94 basic food items in addition to goods and services that support essential sectors are not subjected to VAT

Manama, (BNA): The Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa affirmed that the Ministry will take all necessary measures to ensure that the Value Added Tax (VAT) is not applied on zero-rated goods and services - 94 basic food items in addition to goods and services that support essential sectors - in line with the VAT Law and its Executive Regulations. The minister praised HM the King’s directive to review the mechanisms of applying VAT during its trial period, which takes into account citizens’ needs through the exemption and non-application of VAT on basic goods and services. He underscored the ministry’s efforts aimed at enhancing transparency by dedicating resources towards raising VAT procedural and legal framework awareness. He noted that all registered businesses are required to clearly display their VAT registration prior to levying the 5% VAT, in line with the VAT Law and its Executive Regulations. All registered businesses are also legally required to display the final prices of all goods and services - inclusive of tax. The Tax Invoice should include the full price, followed by the total price to be paid and the amount of tax charged therein as it is a violation to mislead consumers. The minister concluded by highlighting the National Bureau of Taxation’s efforts towards establishing multiple communications channels including the hotline 80008001, e-mail vat@mof.gov.bh, and the website www.nbt.gov.bh.