Industry - Automobiles

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 - Automobiles

Thu Oct 18, 2018 3:34 am

Do I need to pay VAT on purchasing a car?
If you are purchasing a brand-new car from the agency, or a pre-owned car registered under the agency or dealer, then you’ll have to pay 5% VAT on the car’s value.

Do I need to pay VAT on purchasing secondhand cars?
If you are buying a used car that is still registered under the original owner but being sold through a dealer, you will have to pay 5% on the profit the car dealer is making.

Does VAT apply to installments paid on car loans?
No. VAT is not applicable for car loan installments and their associated interest rates.

Is VAT applicable on registration fees for car licenses?
No. VAT is not applicable for car license registration and inspection fees

Is VAT applicable on gas products like petrol and diesel?
Yes, a standard rate of 5% is applicable to petrol, diesel, and other oil and gas products at the pump.

Is VAT applicable on car maintenance charges?
Yes, a standard rate of 5% is applicable on periodic vehicle servicing, such as oil changes and car washes at the service station.

Is VAT applicable on car repair services?
Yes, a standard rate of 5% is applicable on car repair services.

Is VAT applicable on spare car parts?
Yes, a standard rate of 5% is applicable on purchases of spare parts.

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