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GCC VAT Comparison 2026

Six countries, six regimes — how Bahrain's VAT compares across the Gulf.

REFERENCEMarch 2026 · 7 min read

GCC VAT Rates

Country Rate Since Notes
🇧🇭 Bahrain 10% 2019 Increased from 5% in Jan 2022
🇸🇦 Saudi Arabia 15% 2018 Increased from 5% in Jul 2020
🇦🇪 UAE 5% 2018 Unchanged since introduction
🇴🇲 Oman 5% 2021 Latest GCC adopter
🇶🇦 Qatar — TBD No VAT yet
🇰🇼 Kuwait — TBD No VAT yet

💡 Bahrain Advantage

At 10%, Bahrain sits in the middle of the GCC — significantly lower than Saudi's 15%, with a broader base than UAE's 5%. The key differentiator: Bahrain has no corporate income tax (only DMTT for large MNEs), making it highly competitive for businesses.

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