English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

VAT is generally due on the earliest of the Supply date, Tax Invoice date or receipt of all or part of the Consideration. A part-payment creates a tax point to that extent, and the Article also identifies when Goods or Services are supplied.

Who should read this?

Sales, invoicing, accounting, collections and contract-management teams.

Why does it matter?

The correct date determines the VAT Return period. VAT may arise before final delivery or full collection where an invoice or payment comes first.

Earliest of three datesPart-paymentCompletion of Services

Current text

Tax is due on the date of the Supply of the Goods or Services, the date of issue of a Tax Invoice, or the date of receipt of Consideration in full or in part, to the extent of the received amount, whichever comes first. The date of Supply of Goods or Services on which the Tax is due shall be as follows: The date on which the transport of Goods began, if such transport was under the supervision of the Supplier. The date on which the Goods were placed at the Customer’s disposal, if the transport was not supervised by the Supplier. The date on which the installation or assembly of the Goods was completed, in relation to supply dealings involving installation or assembly. The date on which the performance of the Service was completed.

Determine the general tax point

  1. 1

    Order the Supply, invoice and payment dates.

  2. 2

    Determine the Supply date from movement, disposal, installation or completion.

  3. 3

    For a part-payment, account for VAT to the amount received.

  4. 4

    Keep evidence for each date and report it in the correct Tax Period.

Connected provisions

Direct legislative link

Regulations — Article (13)

Supply date for Services

It explains completion, customer acceptance and completion certificates.

Open connected Article
Direct legislative link

Regulations — Article (14)

Special tax-point cases

It covers special cases including instalments, leases, Imports and Deemed Supplies.

Open connected Article

Official guides and tools

Official guide

VAT General Guide

Tax due date

Illustrative example by Madar

Advance payment before a Service

If BHD 300 is received in advance under a BHD 1,000 contract, VAT arises to the extent of BHD 300 on receipt. The balance is tested against the next relevant event.

Questions to help you apply it

  • Which occurred first: Supply, invoice or payment?
  • Was the payment full or partial?
  • What evidence proves completion or disposal?