Bahrain

Asia

How are Giftcards treated for tax purposes in Bahrain (VAT, single-purpose / multi-purpose)?
Giftcards in Bahrain are subject to VAT introduced in 2019. Tax is generally due on redemption. There is no distinction between single-purpose and multi-purpose Giftcards, but practice aligns with the GCC VAT framework.
Is there a legal regulation in Bahrain on the validity period of Giftcards?
Bahrain has no specific legal rule on Giftcard validity. Under the Civil Code, general limitation periods of three years apply to contractual claims. Providers may set their own validity periods as long as they are stated transparently.
What special rules apply in Bahrain for the sale, issuance, or redemption of Giftcards?
Giftcard providers in Bahrain must be registered and comply with tax reporting. Electronic Giftcards may be distributed only via licensed payment service providers. Online sales fall under the 2020 e-commerce law.
Which consumer rights apply in Bahrain regarding expired Giftcards?
Bahrain’s consumer protection law has no specific provisions on expired Giftcards. Retailers must clearly state expiry dates. Breaches of information duties can be treated as unfair commercial practices.