Bahrain Explores Electronic Invoicing to Boost VAT Compliance and Combat Tax Fraud

Following the successful implementation of electronic invoicing in Egypt and Saudi Arabia, Bahrain is now considering its own system as part of efforts to improve VAT compliance and tax collection efficiency. The Kingdom introduced VAT in 2019, initially set at 5%, before raising the rate to 10% in 2022 to address economic challenges post-COVID-19.

The government’s push for electronic invoicing is designed to enhance transparency, minimize tax fraud, and provide detailed insights into economic activity. The National Bureau for Revenue is currently conducting a public consultation on the proposed system, which is expected to follow a phased rollout similar to Saudi Arabia’s approach.

Key benefits of the initiative include simplifying administrative processes for businesses, improving economic policy development through access to detailed data, and supporting Bahrain's fiscal balance program.

There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.