TallyPrime for Bahrain businesses
Run your accounts, 10% VAT, inventory and reports in one system, in Bahraini dinars and in English or Arabic. We set up and support TallyPrime remotely across Bahrain.
Know the market
Bahrain Market VAT Rules Business Compliance E-invoicing StatusTallyPrime
TallyPrime Benefits Your Industry Our Services QuestionsA diversified economy led by small and mid-sized firms
Bahrain's real GDP grew 3.5% in 2025, with non-oil activity up 4.1%. Regional disruption hit oil output in early 2026, and GDP fell 3.8% in Q1, but non-oil activity still grew 2.2%.
An MSME market
About 85,700 active registrations are micro, small or medium enterprises, and they employ almost half of the Bahrainis working in the private sector.
Main sectors
In Q1 2026, finance and insurance made up 19.7% of GDP, manufacturing 14.6%, public administration 9% and construction 7%.
Trade and logistics
Bahrain Logistics Zone sits next to Khalifa Bin Salman Port, with access by land, sea and air. Bahrain International Investment Park serves manufacturing and industry.
Common company types
Options include the WLL, the public or closed B.S.C., and foreign branches. 100% foreign ownership is available in many cases, depending on the activity.
Wider SME definition
Since 12 June 2026, an SME can have up to 250 employees and up to BHD 20 million in annual revenue. Check how the tests apply to your business.
Regional business
Many firms buy, sell or report across borders. Multi-currency accounts and clear VAT treatment help keep BHD books accurate alongside regional transactions.
VAT rules your accounts need to follow
The National Bureau for Revenue (NBR) administers VAT. The standard rate has been 10% since 1 January 2022.
| Treatment | Examples |
|---|---|
| Standard rate: 10% | Most goods and services |
| Zero rate: 0% | Qualifying exports, basic food items, specific healthcare and education, transport, oil and gas, and construction of new buildings |
| Exempt | Certain financial services, and certain sales or leases of real estate |
Registration
- Mandatory above BHD 37,500 in annual taxable supplies
- Voluntary above BHD 18,750 in supplies or expenses
- No threshold for non-residents
- Late registration can bring fines of up to BHD 10,000
Returns
- Quarterly for annual supplies up to BHD 3 million
- Monthly above BHD 3 million
- Due by the last day of the following month
Invoices and records
- Show supplier and VAT registration details, invoice number, dates, tax rate, tax amount and BHD totals
- Keep invoices and VAT records for at least 5 years
- Keep real estate records for 15 years
Rates and exemptions have detailed conditions. Check your own activity against current NBR guidance.
Other rules that depend on good books
VAT is only part of the picture. These requirements also rely on complete and reliable accounting and payroll records.
| Requirement | What to know |
|---|---|
| Audited financial statements | Required entity types file through Sijilat within six months of the financial year end. A Ministry-licensed audit firm must issue the report. |
| Wages Protection System | Since February 2026, private sector employers pay salaries through the LMRA WPS portal and upload a monthly salary file. |
| Draft corporate income tax | Not yet law. The draft proposes 10% on taxable income above BHD 200,000 for businesses above BHD 1 million in revenue or BHD 200,000 in taxable income, expected from 1 January 2027. |
| Domestic minimum top-up tax | 15% from 2025 for Bahrain entities in large multinational groups. |
Corporate tax details may change before the law and its regulations are final. Confirm your position with your tax adviser.
No mandate yet, but clean data is worth preparing
The NBR has not announced a go-live date or a final format. Standard tax invoices remain valid for now, and voluntary structured e-invoicing is permitted if mandatory invoice fields are met.
Standard tax invoices
Paper, PDF and electronic tax invoices remain in use under current VAT rules.
Preparation by NBR
Surveys, tenders and consultations have taken place since 2022.
Phased rollout
Advisers expect phases, starting with large taxpayers. This is not yet official.
Clean your data
Correct VAT numbers, addresses, items and tax categories, and train your team on credit notes.
One system for your accounts, VAT and stock
One entry updates your books, inventory and VAT data, so your team spends less time reconciling separate tools and spreadsheets.
VAT invoices
Create tax invoices from your normal sales entries and print them in English, Arabic or both.
Mismatch checks
VAT exceptions are listed with the voucher involved, so you can correct, accept or exclude them before filing.
Integrated accounting
Keep ledgers, receivables, payables and bank records together, with financial statements ready for your auditor.
Inventory control
Track stock by item and location, with ageing, movement and reorder reports plus customer price lists.
Multi-currency
Record foreign currency sales and purchases alongside BHD books, with forex gains and losses handled in your accounts.
Reports and sharing
See dashboards and drill into any figure. Share invoices, orders and reports on WhatsApp.
Prepare your Bahrain VAT return
- Go to Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
- Review the Returns Summary and drill into any figure.
- Resolve excluded or uncertain vouchers.
- Save the return with Alt+B.
- Export the Return Form with Alt+P, then enter the figures on the NBR portal.
Good to check during setup
- VAT rates and ledgers set up for the 10% and 0% treatments you use
- Party VAT numbers and addresses complete
- Domestic reverse charge entries reviewed, as TallyPrime leaves return boxes 3 and 11 blank
- Your release is up to date under an active TSS
How TallyPrime fits your Bahrain business
Trading and wholesale
Control stock, price lists, credit limits, outstanding bills and multi-currency purchases.
Retail, food and pharmacy
Handle fast billing, mixed VAT treatment, stock movement, and batch and expiry details where needed.
Manufacturing
Use bills of material and manufacturing entries to link raw materials, production and finished goods.
Construction and contracting
Use cost centres to follow income and expenses by project, alongside retention and supplier balances.
Logistics and services
Follow revenue, costs and receivables by job or client, with clear VAT reporting for each period.
Professional firms
Keep client billing, expenses and bank records organized, and share reports quickly with partners and clients.
TallyPrime work we handle for you
Saudi Solution helps you from the first setup to year-end, remotely by phone, WhatsApp and online sessions.
Setup and VAT configuration
We set up your company, ledgers, tax rates, invoice formats and users for Bahrain.
Licence, upgrade and TSS
We help with new licences, the latest release and your Tally Software Services renewal.
Data migration and clean-up
We move data from other systems and correct parties, items, units and tax details.
Tally customization
We build add-ons, reports and invoice formats around your process, in English and Arabic.
Year-end and audit support
We help you close your books and prepare schedules for your licensed auditor.
Training and support
We train your team on daily entries, VAT reports and returns, then support you after go-live.
TallyPrime in Bahrain: your questions answered
Does TallyPrime support Bahrain VAT?
Yes. TallyPrime has a Bahrain VAT return report that helps you review sales, purchases and VAT payable, resolve exceptions, and export the return form figures.
Can TallyPrime file my VAT return directly with the NBR?
TallyHelp describes exporting the Return Form, then entering the figures on the NBR portal and submitting there.
When must a Bahrain business register for VAT?
Registration is mandatory above BHD 37,500 in annual taxable supplies and voluntary above BHD 18,750 in supplies or expenses. Non-residents have no threshold.
Is e-invoicing mandatory in Bahrain?
Not at our last review. The NBR has not announced a go-live date or final format, and standard tax invoices remain valid for now.
Does Bahrain have corporate income tax?
A draft law proposes 10% on taxable income above BHD 200,000, expected from 1 January 2027, subject to approval. It was not yet enacted at our last review.
Can invoices be printed in Arabic?
Yes. TallyPrime can print invoices in English, Arabic or both.
Can you move our data from another system?
Yes. We review your current data, migrate what is needed into TallyPrime, and check the opening balances with you.
Can you help if we are in Bahrain and you are in Jeddah?
Yes. We work with Bahrain businesses remotely, by phone, WhatsApp and online sessions, in English and Arabic.
برنامج TallyPrime للشركات في البحرين
أدر حساباتك وضريبة القيمة المضافة بنسبة 10% والمخزون والتقارير في نظام واحد، بالدينار البحريني وباللغتين العربية والإنجليزية. نساعدكم في إعداد TallyPrime ودعمه عن بُعد في جميع أنحاء مملكة البحرين.
Talk to us about TallyPrime in Bahrain
Tell us your business activity, your current software and your number of users. We will suggest what you need next.
Ismail Eliat
Check the source
Last reviewed 5 November 2026. This page is general guidance, not legal or tax advice. Rules can change, so confirm them with the NBR, the relevant ministry or your tax adviser.
- Arab News: Bahrain's 2025 economic growth
- Gulf News: Bahrain non-oil GDP in Q1 2026
- News of Bahrain: MSME statistics
- Sovereign: new SME definitions
- PwC: Doing Business in Bahrain 2025
- RegFollower: NBR VAT Registration Guide, July 2026
- Ministry of Industry and Commerce: audited financial reports
- EY: Wages Protection System
- Deloitte: draft corporate income tax
- ClearTax: e-invoicing in Bahrain
- TallyHelp: Bahrain VAT returns in TallyPrime