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 refund Bahrain VAT to two groups: (1) Taxable Persons resident in another Implementing State, under the mechanism agreed between States; (2) Persons resident outside the Implementing States who made no Supply creating Tax liability in Bahrain or any Implementing State during the claim period, are registered for VAT or similar Tax in their residence country and incurred the Tax for their Economic Activity. The supported claim is due within three months after year-end and the NBR decides within three months.

Who should read this?

Non-Resident businesses incurring Bahrain business costs without registration-liable Supplies.

Why does it matter?

This is not a registration substitute. Under the NBR's published Non-Resident refund procedure (not the Article itself), a claim also requires at least BHD 200, one claim per calendar year and submission from 1 January through 31 March of the following year.

Not registered or required to registerBusiness-purpose costNBR procedure: BHD 200 and annual claim by 31 March

Current text

A. The Bureau may refund Tax paid in the Kingdom to Non-Resident Persons based on a request submitted on a form prepared for this purpose for the following Persons: 1. Taxable Persons resident in any of the Implementing States. 2. A Person who is not resident in a territory of any Implementing State, subject to meeting the following conditions: a) He does not make any Supply of Goods or Services which would make him liable to pay Tax in the Kingdom or any Implementing State during the period to which the refund request relates. b) He shall be registered for Tax purposes or other similar Tax in his country of residence. c) The Tax is incurred by the Non- Resident Person for the purposes of his business activity. B. The refund application shall be accompanied by all supporting documents and shall be submitted within three months from the end of the year during which the Tax was due. C. The Bureau shall process the request and notify the applicant of its decision to accept or reject the request within three months from the date of submission of the application. D. The refundable amounts approved by the Bureau shall be paid in accordance with the mechanism set by the Bureau, provided that a mechanism agreed between the concerned countries is implemented to deal with refund applications submitted by Taxable Persons residing in any other Implementing State. E. The refund request shall include, at a minimum, the following data: 1. The name and address of the Person requesting the refund. 2. A description of his activities. 3. Details of the registration of the Person making the refund request with the relevant authority in his country of residence. 4. The reasons the Person bore the costs related to the refund request in the Kingdom. 5. A description of the costs to which the refund of Tax relates. Judicial obligations

Non-Resident refund test

  1. 1

    Confirm Non-Residence and no Bahrain registration obligation.

  2. 2

    Evidence VAT or similar registration at home.

  3. 3

    Confirm no Supply created Tax liability in Bahrain or any Implementing State in the period.

  4. 4

    Link every invoice to business activity.

  5. 5

    Reach the BHD 200 minimum set by the NBR procedure (not the Article).

  6. 6

    Submit one annual claim between 1 January and 31 March.

  7. 7

    Attach form, invoice schedule and evidence; answer extra requests within 30 days under the NBR procedure.

Connected provisions

Direct legislative link

Law — Article (57)

Non-Resident refund

The Law creates refund and the Article defines eligibility and period.

Open connected Article
Thematic link

Regulations — Article (36)

Non-Resident registration

Registration must be tested first.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (90)

Official guide

VAT General Guide — Version 1.15

Refunds and enforcement

Official procedure

Non-Resident VAT Refund Scheme

Eligibility, form and invoice schedule

Connected Madar tools

Madar tool

Registration Centre

Browse practical tools for all three taxes.

Madar tool

Audit and Assessment Centre

Browse practical tools for all three taxes.

Illustrative example by Madar

BHD 240 of 2026 business costs

A foreign company registered for similar Tax at home, not registered or required to register in Bahrain, incurs BHD 240 Bahrain VAT on 2026 business costs. With no registration-triggering Supplies it files its one claim from 1 January to 31 March 2027. BHD 180 is below the current published minimum.

Questions to help you apply it

  • Bahrain registration obligation?
  • Home Tax registration?
  • Business-purpose costs?
  • At least BHD 200?
  • Filed January–March?