## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/bh/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# VAT in Transactions

All sales and purchase transactions in Zoho Books are VAT-compliant. 

Once you’ve set up the [taxes](/bh/books/help/vat-bh/set-up-taxes.html), [contacts](/bh/books/help/vat-bh/contacts.html) and [items](/bh/books/help/vat-bh/items.html) 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.

![Item VAT Settings](/bh/books/help/images/vat/select-taxes.png)

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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