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

Voluntary registration is available below the mandatory threshold where Supplies or expenses exceeded BHD 18,750 in the previous 12 months, or are expected to exceed it in the next 12 months.

Who should read this?

New and small businesses, including projects incurring substantial start-up costs before material sales arise.

Why does it matter?

Including expenses can qualify a pre-revenue project, but registration brings the full compliance package and generally lasts at least 24 months. It should not be chosen for a short-term refund without a complete cost-benefit review.

BHD 18,750Supplies or expenses24-month minimum

Current text

The Voluntary Registration Threshold shall be in accordance with Paragraph 3 of Article 51 of the Agreement. A Person not obliged to mandatorily register in accordance with Article 29 of this Law, may voluntarily apply for registration for Tax purposes in the following two cases: If he proves, at the end of any month, that the value of his Supplies or expenses during the preceding twelve-month period exceeds the Voluntary Registration Threshold. At any time, he anticipated that the value of his Supplies or expenses over the next twelve months will exceed the Voluntary Registration Threshold. The Regulations shall specify the rules, procedures and conditions necessary for the application of the provisions of this Article.

Voluntary-registration test

  1. 1

    Calculate actual Supplies or expenses over the previous 12 months.

  2. 2

    Test documented expectations for the next 12 months.

  3. 3

    Compare Input Tax recovery with invoicing, Return and recordkeeping costs.

  4. 4

    Do not charge or collect VAT before the effective date on the registration certificate.

  5. 5

    Plan to remain registered for 24 months unless the activity completely ceases and this is evidenced to the NBR.

Connected provisions

Direct legislative link

Regulations — Article (44)

Voluntary registration

It states BHD 18,750, the 60-day NBR decision period and the 24-month minimum registration period.

Open connected Article

Official guides and tools

Official page

VAT Registration

Registration thresholds and process

Official FAQs

Registration FAQs

Voluntary registration and minimum period

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

New project with start-up expenses

If sales remain below BHD 18,750 but qualifying actual expenses reached it over the previous 12 months, the project may apply voluntarily. Acceptance and the effective date remain with the NBR, and Tax Invoices cannot be issued before effectiveness.

Questions to help you apply it

  • Did actual or expected Supplies or expenses reach BHD 18,750?
  • Do recovery benefits exceed 24 months of compliance obligations?
  • What is the effective date on the registration certificate?