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Import duty and VAT in Bahrain: how to estimate the landed cost

Published · 3 min read

How import duty and 10% VAT stack up on shipments into Bahrain, with a worked landed-cost example.

Key facts

PlaceBahrain
TaxVAT
Standard rate on file10%
Multiply net price by1.1
Tax share of a gross price9.09%
CurrencyBHD

The customs value

Duty is usually charged on the customs value of the goods, which in many countries includes the price paid plus shipping and insurance to the border. Some countries use the value at the point of export instead, so check the valuation basis that applies in Bahrain.

Worked example

Here is the calculation with sample figures. Change any number in the Bahrain Import Duty Calculator to run your own.

Worked example: Bahrain Import Duty Calculator
Value of goodsBHD1,500.000
Shipping and insuranceBHD75.000
Duty rate (%)5%
Tax rate (%)10%
Import dutyBHD78.750
TaxBHD165.375
Landed costBHD1,819.125

Duty rates depend on the product code

Every product has a tariff classification code, and the duty rate is set per code. Two similar products can carry very different rates. Trade agreements, quotas and anti-dumping measures can change the rate again, so the 5% used in the example below is only an illustration.

VAT is charged on top of duty

Import VAT in Bahrain is normally charged on the customs value plus the duty, which means you pay tax on the duty itself. Registered businesses can often reclaim import VAT as input tax, but the duty is a real cost.

Quick reference at 10%

Common amounts in Bahrain, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.

AmountTax on net amountGross (net + tax)Net if amount includes tax
BHD10.000BHD1.000BHD11.000BHD9.091
BHD50.000BHD5.000BHD55.000BHD45.455
BHD100.000BHD10.000BHD110.000BHD90.909
BHD250.000BHD25.000BHD275.000BHD227.273
BHD500.000BHD50.000BHD550.000BHD454.545
BHD1,000.000BHD100.000BHD1,100.000BHD909.091
BHD5,000.000BHD500.000BHD5,500.000BHD4,545.455

How Bahrain compares

Standard rates on file for other countries. A difference of a few points matters most on high-value purchases and on cross-border sales.

PlaceRate on fileCompared with 10%
Australia10%same
Austria20%higher
Azerbaijan18%higher
Bangladesh15%higher
Belarus20%higher
Belgium21%higher

Using the calculator step by step

  1. Open the Bahrain Import Duty Calculator.
  2. Type your figures into the numbered lines. Results update as you type.
  3. Check the rate field. It starts at 10%; change it if a reduced rate, local surcharge or exemption applies to you.
  4. Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.

Key terms

Standard rate
The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
Effective rate
Total tax divided by total income, the average rate you actually pay.
Net amount
The amount before tax is added. On an invoice it is the figure the tax is calculated on.
Exempt supply
A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.
Withholding
Tax deducted at source, by an employer or payer, before the money reaches you.

Common mistakes to avoid

Run your own numbers. The Bahrain Import Duty Calculator updates as you type and shows the formula it uses.

Frequently asked questions

Is VAT charged on import duty in Bahrain?

In most systems, yes: import VAT is calculated on the customs value plus duty.

Can I reclaim import VAT?

Businesses registered for VAT can usually reclaim it as input tax, subject to local rules and proper documentation.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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