Implementation of VAT
The Value Added Tax (“VAT”) has been implemented on January 1st, 2019, in accordance with Decree Law No. 48 of the year 2018 and updated in accordance with Decree Law No. 33 of the year 2021 (“VAT LAW”) which is an indirect tax imposed on fees, commissions and commercial discounts for Arab Bank’s products and services that are subject to VAT in accordance with the VAT Law.
For more information about VAT, please visit the National Bureau for Revenue (NBR) website (https://www.nbr.gov.bh
Based on the VAT Law, kindly be notified that Arab Bank plc – Kingdom of Bahrain is committed to comply with the VAT Law and any amendments thereto and has embarked on a VAT implementation project to ensure the successful implementation of the VAT. Accordingly, Arab Bank’s plc – Kingdom of Bahrain fees, commissions and commercial discounts for the products and services will be subject to the VAT rate of 10% effective 1st January, 2022, except for the excluded or exempted according to the VAT Law.
Acceptance and Agreement:
By accepting to continue transacting with Arab Bank plc – Kingdom of Bahrain, the customer accepts and agrees to pay VAT applicable to any product or service and commercial discounts and agrees that this statement shall be an integral part of the terms and conditions of the account opening documentation previously signed by the customer including the manual of general and special terms for dealing with the accounts and the banking and electronic services.