VAT in Transactions

All sales and purchase transactions in Zoho Books are VAT-compliant. 

Once you’ve set up the taxes, contacts and items in your Zoho Books account, you can start creating transactions.

When creating a transaction, the default tax rate that you set for an item will be applied. However, this can be changed, if necessary.

Item VAT Settings

The available tax treatments of these transactions will determined by the:

If you are a VAT registered person in Bahrain, here are the different tax rates that can be applied on your transactions based on your customer’s tax treatment and the place of supply.

Sales Transactions in Bahrain

Customer Tax Treatment Place of Supply Tax Rates
VAT Registered Bahrain Standard rate [5%], Zero-rate, Exempt, Out of scope
Non VAT Registered Bahrain Standard rate [5%], Zero-rate, Exempt, Out of scope
GCC VAT Registered Bahrain Standard rate [5%], Zero-rate, Exempt
GCC VAT Registered GCC Zero-rate
GCC Non VAT Registered Bahrain Standard rate [5%], Zero-rate, Exempt,
GCC Non VAT Registered GCC Zero-rate
Non GCC - Zero-rate

Purchase Transactions in Bahrain

Vendor Tax Treatment Place of Supply Tax Rates
VAT Registered Bahrain Standard rate [5%], Zero-rate, Exempt, Out of scope
Non VAT Registered Bahrain No Tax
GCC VAT Registered Bahrain Reverse charge - Standard rate [5%], Zero-rate
GCC Non VAT Registered Bahrain Reverse charge - Standard rate [5%], Zero-rate
Non GCC - Reverse charge - Standard rate [5%], Zero-rate

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