English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

The NBR may claim from another Implementing State the Tax paid there by a Bahrain-resident, unregistered individual on Goods acquired there and brought into Bahrain, where the Goods value exceeds BHD 1,000. Settlement is between States through the automated direct transfer or another agreed Member State mechanism. The Article gives the individual no refund right; absent proof of payment in the other State, the NBR may impose Tax on entry.

Who should read this?

Bahrain-resident unregistered individuals bringing in high-value Goods bought in an Implementing State, who must evidence Tax paid there.

Why does it matter?

This is an inter-state settlement, not a refund claim filed by the individual, and it depends on an activated mechanism. For the individual the practical effect is evidential: above BHD 1,000 without proof of payment in the other State, Tax may be imposed on entry, so payment evidence must be retained.

Resident and not registeredMore than BHD 1,000Inter-state mechanism and payment proof

Current text

A. The Bureau shall be entitled to refund Tax paid by individuals in an Implementing State on Goods acquired by them, with consideration to the following: 1. The individuals should be resident in the Kingdom and not registered for Tax purposes. 2. Goods acquired from the Implementing State must have entered the Kingdom. 3. The value of the Goods acquired must exceed one thousand Dinars. B. The Tax shall be adjusted in accordance with the Automated Direct Transfer ) Mechanism applicable under the framework of the GCC Customs Union or in accordance with any other mechanism agreed between the Member States. C. Where no proof of payment is made in the other Member State, the Bureau shall be entitled to impose Tax on such Goods upon entry into the Kingdom.

Test the rule and active mechanism

  1. 1

    Confirm Bahrain residence and no registration.

  2. 2

    Check whether the other State is an Implementing State at the relevant date.

  3. 3

    Confirm value is more than BHD 1,000.

  4. 4

    Evidence Goods entry into Bahrain.

  5. 5

    Retain invoice and foreign Tax payment proof.

  6. 6

    Verify an active inter-state settlement mechanism; the claim is made by the NBR, not the individual.

  7. 7

    Expect possible Tax at entry without proof.

Connected provisions

Direct legislative link

Law — Article (57)

Individual refund

The Law creates the refund power and this Article governs the NBR claim against the other State, residence, value and mechanism.

Open connected Article
Thematic link

Regulations — Article (90)

Non-Resident refund

Article 90 is a refund claim filed by a Non-Resident for business costs, unlike this inter-state settlement.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (87)

Official guide

VAT General Guide — Version 1.15

Refunds and enforcement

Current application

GCC Imports treatment

VAT Return guidance pending unified GCC system

Connected Madar tools

Madar tool

Threshold calculator

Browse practical tools for all three taxes.

Illustrative example by Madar

BHD 1,000 is insufficient

A resident unregistered individual brings Goods worth exactly BHD 1,000 into Bahrain. The threshold is not met because value must exceed BHD 1,000. At BHD 1,200, payment proof, entry evidence and an active common mechanism are still required.

Questions to help you apply it

  • Resident and unregistered?
  • Actual Implementing State?
  • Value above BHD 1,000?
  • Active mechanism and proof?