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.
The available tax treatments of these transactions will determined by the:
- Location from where your business is operating.
- Place of supply.
- Contact’s tax treatment.
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 [10%], Zero Rate, Exempt, Out of Scope, Domestic Reverse Charge (Out of Scope) |
| Non VAT Registered | Bahrain | Standard Rate [10%], Zero Rate, Exempt, Out of Scope |
| GCC VAT Registered | Bahrain | Standard Rate [10%], Zero Rate, Exempt |
| GCC VAT Registered | GCC | Zero Rate |
| GCC Non VAT Registered | Bahrain | Standard Rate [10%], 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 [10%], Zero Rate, Exempt, Out of Scope, Domestic Reverse Charge - (Standard Rate [10%]) |
| Non VAT Registered | Bahrain | Out of Scope |
| GCC VAT Registered | Bahrain | Goods / Goods & Services - Out of Scope Services - Exempt, Reverse Charge (Standard Rate [10%], Zero Rate) |
| GCC Non VAT Registered | Bahrain | Goods / Goods & Services - Out of Scope Services - Exempt, Reverse Charge (Standard Rate [10%], Zero Rate) |
| Non GCC | - | Goods / Goods & Services - Out of Scope Services - Exempt, Reverse Charge (Standard Rate [10%], Zero Rate) |
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