Industry - Medical

Here you would know the basics and essentials on the workings of VAT in Bahrain. This is a must read and educative knowledgebase for those new to applying VAT within an Organization.
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Industry - Medical

Tue Oct 16, 2018 11:40 am

How are medications treated under VAT?
Medications are zero-rated under VAT.

Medications are defined by the Cabinet of the BAHRAIN as:

“Every product containing a substance(s) which achieves the intended objective in or on the human body via biological effect, which is produced, sold or offered for use in cases relating to diagnosing, treating, healing, relieving or preventing diseases, or renewing, correcting or rehabilitating the function of body organs.”

How is medical equipment treated under VAT?
Medical equipment registered or approved by the Ministry of Health and Prevention is zero-rated under VAT.

Which medical services are zero-rated?
The following medical services are zero-rated:
  • Preventive healthcare and treatment services (provided by a healthcare institution, physician, nurse, dentist or pharmacy licensed by the Ministry of Health and Prevention or the competent authority).
  • Medications registered or approved by the Ministry of Health and Prevention.
  • Medical equipment registered or approved by the Ministry of Health and Prevention.

Which medical services are taxed under VAT?
The following services are taxed under VAT:

  • Medications that are not registered or approved by the Ministry of Health and Prevention.
  • Other healthcare services that are not for treatment and are not preventive.

What are the VAT rates in the healthcare sector?


Preventive healthcare services including vaccinations 0%
Healthcare services aimed at the treatment of humans, including medical services 0%
Dental services 0%
Healthcare services that are not for treatment and are not preventive (such as elective or cosmetic services) 5%
Medicines and medical equipment listed in the Cabinet Decision 0%
Medicines and medical equipment not listed in the Cabinet Decision 5%
Other medical supplies 5%

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