Discusses pricing formula and other fees, value-added tax (VAT), etc.

The Bahraini Government does not levy any sales tax on goods or services and there are no corporate taxes.  However, the Bahraini Government introduced an excise tax in 2017 that imposes taxes of 100 percent on tobacco and energy drinks and 50 percent on soft drinks.  The Bahraini Government plans to implement a Valued Added Tax (VAT) in early 2019 in conjunction with other GCC member governments. 

Government of Bahrain officials have indicated the VAT will target mainly luxury goods.  Businesses that sell these goods will be entitled to claim a credit for VAT paid on expenditures relating to their business activities.  Most food items, medications, and books are not expected to be subject to the VAT.

Most restaurants charge a ten percent hospitality tax, plus an additional ten to twelve percent “service charge,” a fee that is rarely passed on to wait staff. 

Shipping generally adds a considerable cost to items manufactured in the United States, which already face stiff competition from European and Asian suppliers.  This disadvantage is periodically counterbalanced by exchange rate shifts between the dollar and European and Asian currencies.

Hard bargaining is common and expected in the local souqs (traditional markets) of Manama and Muharraq, where buyers generally ask for discounts and vendors inflate their initial offers accordingly.

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