Global VAT & Indirect Tax News

The Bahraini National Bureau for Revenue released updated guidance on VAT treatment of real‑estate lease incentives on 29 January 2026. The guide clarifies that rent reductions and rent‑free periods are exempt, while reimbursements for fit‑out contributions are taxable. It also provides examples of common lease incentives used by landlords.

A UK Upper Tribunal decision allows a bespoke hair‑replacement system for severe female hair loss to be zero‑rated under Schedule 8 of the VAT Act 1994. The ruling expands the definition of disability to include social and psychological impacts and confirms that composite supplies that adapt goods can qualify for relief. The case clarifies that wigs and similar products are not automatically treated the same, opening new zero‑rating opportunities for adaptive products.