The Kingdom of Bahrain has announced the introduction of the Value Added Tax (VAT) in the country, effective January 1, 2019.

VAT is a form of indirect tax on the consumption or use of goods and services, applied at the point of sale, and charged on applicable transactions.

A registered business collects the VAT charged to customers on the supply of goods and services, and pays VAT on goods and services purchased from suppliers. The difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to the National Bureau of Taxation (NBT), the Authority established to collect and manage VAT in Bahrain.

VAT has been introduced in the Kingdom of Bahrain at a standard rate of 5%. Certain supplies of goods and services are subject to a 0% VAT charge, while some are exempt (Refer Decree-law No (48) of 2018 on value added tax for more details).

VAT is a general consumption tax, and applies to the majority of transactions of goods and services, unless specifically exempt by law. FedEx will apply and collect VAT, where applicable on its services, from January 1, 2019. Rates and charges on all existing FedEx contracts are VAT exclusive.

A business must register for VAT if their taxable supplies and imports exceed the prescribed “mandatory registration threshold.” Additional information for businesses can be found at the National Bureau of Taxation.

For more details on how your business can prepare for VAT please visit the National Bureau of Taxation.

To register for VAT, please follow the VAT creation guidelines at the VAT information resource center published by the National Bureau of Taxation.

The National Bureau for Taxation (NBT) has issued a ‘Taxpayer Charter’ which outlines expectations from registered taxpayers to ensure building a relationship of mutual trust and respect. Further details can be found at the National Bureau of Taxation

In order to share your Tax Registration details with FedEx, please download the template, fill in the details, attach the completed template and send it to bahrain@fedex.com along with a copy of the tax registration certificate.

In order for us to continue serving you following the implementation of VAT on January 1, 2019, the following tax registration details are required:

1. FedEx Account Number(s)
2. Name of your company
3. Registered office address
4. Tax Registration Number
5. Copy of Tax Registration certificate (if available)

To ensure VAT benefits, your Tax Registration Number needs to be listed on the Tax Invoice provided by FedEx Express after January 1, 2019.

FedEx requires a copy of the tax registration certificate to verify the information provided, and avoid any administrative errors in invoicing.

To ensure your tax registration details are entered correctly into our systems, it is important to update your tax registration information in the FedEx template. Once updated, it should be emailed to bahrain@fedex.com along with a copy of your Tax registration certificate (if available).

If you have submitted incorrect information, you can re-submit the correct details along with the supporting documents to bahrain@fedex.com.

Yes. You can submit your Tax Registration Number with the supporting documents to bahrain@fedex.com when you receive them.

Legal entity name: Federal Express International Inc. - Bahrain Branch

Registered address: 6, Building 18, Road 30, Block 224, Muharraq Town, Manama, Bahrain PO Box 2565

Tax Registration number: This field will be updated once FedEx receives its Tax Registration Number

For a copy of the FedEx Tax Registration certificate, please contact your FedEx sales representative, or write to bahrain@fedex.com

No. Additional contracts are not required. Rates and charges on all existing FedEx contracts are VAT exclusive. FedEx will apply and collect VAT, where applicable on its services from January 1, 2019.