Adoption of the attached Regulations
Brings the attached Executive Regulations into operation.
Read commentary51 Articles with practical commentary
Understand the Regulations through the process you need
Choose registration, warehouses, movements, returns, relief or supervision. Each card opens the Article commentary, example, action and relevant source and guide.
Decision No. 17 of 2017 and the 2022 amendment
Choose the process you need to understand
The Regulations are organised into ten clear topics. Open a topic and Article to see the rule, explanation, documents and common mistakes.
- Topics
- 10
- Articles
- 51
- Available now
- 51 commentaries
Before the Regulation Articles
The two issuing Articles have their own commentary
They are separate from the 51 Regulation Articles: the first adopts the Regulations and the second governs implementation and commencement.
The 2022 amendment is reflected in the commentary
Articles 1, 11, 20 and 44 are marked as amended: Decision No. 31 of 2022 replaced the distinctive-mark definition and added the NBR definition in Article 1, and replaced Article 11(6), Article 20(b) and Article 44. Their pages explain the amendment and link to NBR Digital Stamps implementation decisions, so the original wording is not presented as current.
Open the official amending Decision01Topic 1 · Articles 1–7Which goods are taxable, how is tax calculated, and when does it become due?
Scope, calculation and liability
Which goods are taxable, how is tax calculated, and when does it become due?
Scope, calculation and liability
Why does this topic matter?Start here before determining the value or the person liable to pay.
Article 1
Amended in 2022Definitions
Sets the terms used throughout the Regulations, including the 60-day tax period, warehouse, licensee, the distinctive mark as redefined in 2022, and the NBR definition added by that amendment.
Read the Article commentaryArticle 2
Taxable goods
Identifies the categories of goods within the Excise Tax scope.
Read the Article commentaryArticle 3
Tax rates
Connects each class of goods to the rate prescribed by the legal package.
Read the Article commentaryArticle 4
Tax base and calculation
Explains the tax base, the higher-value rule, calculation time and goods falling under more than one description.
Read the Article commentaryArticle 5
Release for consumption
Lists events that trigger tax, including production or import outside suspension and unsubstantiated loss or damage.
Read the Article commentaryArticle 6
Tax suspension
Identifies production, storage and movement situations in which tax liability remains suspended.
Read the Article commentaryArticle 7
Person liable to pay
Identifies liable persons and provides for joint liability where more than one person is responsible.
Read the Article commentary02Topic 2 · Articles 8–13Must I register, and what information and deadlines should I know?
Registration, changes and cancellation
Must I register, and what information and deadlines should I know?
Registration, changes and cancellation
Why does this topic matter?Relevant to importers, producers and holders of goods under suspension.
Article 8
Who applies
Identifies the activities requiring an Excise Tax registration application.
Read the Article commentaryArticle 9
Application information
Lists minimum applicant, business, registration and goods information.
Read the Article commentaryArticle 10
Decision and objection
Governs the decision period, refusal grounds, notification, objection and effective date.
Read the Article commentaryArticle 11
Amended in 2022Registrant duties
Requires safeguarding goods, keeping records, invoices and price lists, using the registration number, enabling supervision, and affixing the distinctive mark to goods on which tax is due through an NBR-approved supplier (item 6 as amended by Decision 31/2022).
Read the Article commentaryArticle 12
Changing registration data
Requires written notice immediately when a material change occurs and 30 days before any intended change, and explains the potential effect on registration.
Read the Article commentaryArticle 13
Registration cancellation
Covers cancellation requests (decided within 15 days) and their preconditions, including settling taxes, penalties and returns under this or any other tax law, and inactivity for one year from registration.
Read the Article commentary03Topic 3 · Articles 14–23When do I need a tax warehouse, and how do I obtain and maintain its licence?
Warehouses and licences
When do I need a tax warehouse, and how do I obtain and maintain its licence?
Warehouses and licences
Why does this topic matter?Relevant to producers or warehouse operators keeping goods under suspension.
Article 14
Eligible premises
Distinguishes eligible warehouse premises from direct retail locations, with a special rule for free zones.
Read the Article commentaryArticle 15
Production in a warehouse
Connects excise production to the licensed warehouse and its licensee.
Read the Article commentaryArticle 16
Storing local production
Governs local goods under suspension and the owner's responsibility when they leave it.
Read the Article commentaryArticle 17
Warehouse application
Sets application information, applicant conditions and a separate application for each warehouse.
Read the Article commentaryArticle 18
Financial guarantee
Governs calculation, reduction (to no less than 5%) or increase, recalculation every 12 months and a separate guarantee for each warehouse.
Read the Article commentaryArticle 19
Licence decision and objection
Covers the decision period (30 days; silence is refusal), refusal, notice, grievance (30 days, decided within 15), licence conditions and commencement.
Read the Article commentaryArticle 20
Amended in 2022Licensee duties
Requires an administrative system for stock, movements and production, requires the licensee to affix the distinctive mark to goods on which tax is due through an NBR-approved supplier (paragraph (b) as amended by Decision 31/2022), and to carry out requested inspections.
Read the Article commentaryArticle 21
Licence term and renewal
Sets the licence term (one calendar year from issue), a renewal request within the 90 days before expiry, and continuity while a timely renewal awaits decision.
Read the Article commentaryArticle 22
Changing licence data
Requires written notice immediately when a material change occurs and 30 days before any intended change to licence data.
Read the Article commentaryArticle 23
Cancellation and succession
Covers cancellation, remaining goods, non-use for more than 90 days, company dissolution and transfer to the successor on death for three months or the remaining term, whichever is shorter.
Read the Article commentary04Topic 4 · Articles 24–30How do I move goods under suspension without triggering tax in transit?
Movement under suspension
How do I move goods under suspension without triggering tax in transit?
Movement under suspension
Why does this topic matter?Relevant to senders, recipients and warehouse operators in Bahrain and abroad.
Article 24
Sending and receiving
Allows a licensee to send and receive goods under suspension and assigns responsibility for that status.
Read the Article commentaryArticle 25
Movement permit application
Requires a prior permit, a copy of which accompanies the consignment, sets goods, potential tax, origin, destination, transport and duration information, and requires the receiving licensee's prior consent.
Read the Article commentaryArticle 26
Permit decision
Governs a 7-day decision (silence is refusal), refusal grounds and notice, a grievance within only 7 days decided within 15 days, and 15-day permit validity.
Read the Article commentaryArticle 27
Amending or cancelling a permit
Explains when movement details or destination may change, an application may be cancelled or time extended.
Read the Article commentaryArticle 28
Recipient refusal
Bars the recipient from refusing the goods once the permit is issued except for reasons beyond its control, in which case the sender re-routes or cancels the permit and returns the goods.
Read the Article commentaryArticle 29
Closing the movement permit
Governs proof of receipt, closing movement responsibility and non-arrival.
Read the Article commentaryArticle 30
Movement between one owner's warehouses
Allows movements between one licensee's warehouses without a permit, subject to an automated tracking system and a monthly report within 15 days of month-end, and addresses quantity discrepancies.
Read the Article commentary05Topic 5 · Articles 31–35When do I file and pay, and what happens if the return is incorrect?
Returns, assessment and payment
When do I file and pay, and what happens if the return is incorrect?
Returns, assessment and payment
Why does this topic matter?Separates imports from local production because their procedures differ.
Article 31
Imported-goods declaration
Connects import declaration and payment to customs procedures and release information.
Read the Article commentaryArticle 32
Local-production return
Sets the 60-day tax period starting on the first day of a month and requires a return within 15 days of each period end, even with no transactions.
Read the Article commentaryArticle 33
Authority assessment
Governs assessment for non-compliant or incorrect declarations or returns or non-registration, notice of the basis, and a 30-day grievance.
Read the Article commentaryArticle 34
Payment on imports
Collects tax on imported goods through customs rules and procedures.
Read the Article commentaryArticle 35
Payment on local production
Sets payment on release for consumption, within 15 days of the tax-period end, and within 15 days of notice of an assessment.
Read the Article commentary06Topic 6 · Articles 36–39Are there exemptions, and what about travellers, duty-free sales or mistaken relief?
Exemptions, free zones and mistaken relief
Are there exemptions, and what about travellers, duty-free sales or mistaken relief?
Exemptions, free zones and mistaken relief
Why does this topic matter?Relevant to diplomatic bodies, travellers, duty-free sellers and mistaken refund recipients.
Article 36
Diplomatic exemption
Sets reciprocity, use, destination and evidence conditions, limits the exemption to imports only, and sets the effect of breach.
Read the Article commentaryArticle 37
Traveller exemption
Links relief for non-commercial traveller goods to customs exemption conditions and limits.
Read the Article commentaryArticle 38
Free-zone and duty-free sales
Retail sales trigger tax unless the buyer presents a boarding pass for an international flight departing within 24 hours and the sale is recorded by its barcode.
Read the Article commentaryArticle 39
Incorrect refund or exemption
Requires repayment of amounts refunded or relieved without entitlement as soon as the person knows, and provides for the Ministry's notice to repay.
Read the Article commentary07Topic 7 · Articles 40–43What are the inspection powers and penalties for non-compliance?
Supervision and penalties
What are the inspection powers and penalties for non-compliance?
Supervision and penalties
Why does this topic matter?Relevant to every registrant or licensee during an inspection or violation process.
Article 40
Enforcement powers
Sets entry, inspection, sampling, evidence gathering and record-of-violation requirements.
Read the Article commentaryArticle 41
Administrative penalties
Covers filing, payment, obstruction and information penalties while preserving the underlying tax debt.
Read the Article commentaryArticle 42
Repeat violations
Explains the effect of repeating the same violation within three years on penalties or the licence.
Read the Article commentaryArticle 43
Penalty collection
Connects penalty collection to the mechanisms and procedures used to collect tax.
Read the Article commentary08Topic 8 · Article 44What is the digital stamp, and may goods be sold without it?
Digital Stamps Scheme
What is the digital stamp, and may goods be sold without it?
Digital Stamps Scheme
Why does this topic matter?Relevant to producers, importers and traders of tobacco products covered by implementation decisions.
09Topic 9 · Articles 45–47Which records must I keep, and is my tax information confidential?
Confidentiality, records and registration number
Which records must I keep, and is my tax information confidential?
Confidentiality, records and registration number
Why does this topic matter?Relevant to every registrant building a compliance file and preparing for inspection.
Article 45
Information confidentiality
Restricts disclosure of tax information to authorised purposes, permission or judicial request.
Read the Article commentaryArticle 46
Record keeping
Sets the types of movement, pricing, tax and supporting records and their retention period (5 years from the end of the year of the transaction).
Read the Article commentaryArticle 47
Using the registration number
Requires the registration number on dealings, returns and Excise Tax documents.
Read the Article commentary10Topic 10 · Articles 48–51What were the transitional rules, and how are deadlines calculated?
Transitional and final provisions
What were the transitional rules, and how are deadlines calculated?
Transitional and final provisions
Why does this topic matter?For historical review and commencement; some provisions no longer describe a current filing step.
Article 48
Stock held at commencement
A transitional rule for goods held at commencement and the one-off transitional return.
Read the Article commentaryArticle 49
Deadline falling on a holiday
Moves a deadline to the next working day where it expires on a day off or an official holiday.
Read the Article commentaryArticle 50
Informant rewards
Provides the basis for rewarding a person whose information leads to tax or penalty collection, capped at 2.5% of the fine collected and BHD 10,000.
Read the Article commentaryArticle 51
Deemed registration and licensing
A transitional rule for existing businesses and warehouses when the Law commenced.
Read the Article commentary