VAT Recovery in Bahrain: Annual Deadline on March 31
Introduced in the Kingdom of Bahrain in 2019 with an initial rate of 5%, the Bahraini VAT rate doubled in 2022. Today, the standard VAT rate in Bahrain stands at 10% and applies to most goods and services.
Foreign businesses making professional purchases or business trips in Bahrain incur this 10% VAT on their supplier invoices and expense reports. According to Article 90 of the VAT law’s implementing regulations, this tax can be reclaimed from the National Bureau for Revenue (NBR).
Conditions for VAT Recovery in Bahrain
VAT recovery in Bahrain for non-resident companies is subject to the following conditions:
- No fixed establishment or taxable operations in Bahrain
- VAT registration in the country of establishment
- Expenses incurred for the company’s economic activities
Certain expenses are not eligible for VAT recovery in Bahrain, including those exclusively related to entertainment (accommodation, catering, events) or personal use of assets (e.g., passenger vehicles).
VAT Refund Procedure in Bahrain
The VAT refund in Bahrain must be requested annually, between January 1 and March 31 of the year following the expenses incurred. The minimum VAT amount to be claimed is 200 BHD.
The company must submit its VAT refund request in Bahrain via email, including:
- The official completed and signed form
- Tax invoices and proofs of payment
- VAT registration certificate
- Any other required supporting documents
The processing time for VAT refund requests in Bahrain is three months from the receipt of the complete application. If additional information is required, the requesting company has 30 days to respond.
Assistance by BtoBnice
BtoBnice supports non-resident businesses in VAT recovery in Bahrain: contact@btobnice.com
Our services include:
- Invoices analysis and correction
- Collection of supporting documents
- Preparation and submission of the VAT refund request in Bahrain
- Communication with the National Bureau for Revenue
- Follow-up until the official decision and refund are obtained
Additionally, for your taxable operations in Bahrain, we provide full tax compliance management, from VAT registration to periodic VAT returns filing.
Don’t miss the annual deadline of March 31 to submit your VAT refund request in Bahrain!
