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

Certain pre-registration Input VAT may be deducted in the first Return after registration. Goods, Services and Capital Assets each have conditions, including the six-month window for Services and continued availability or use of Goods and assets.

Who should read this?

Taxable Persons, finance teams and advisers applying this Article to a Bahrain VAT position.

Why does it matter?

Pre-registration purchases need separate tests by type, timing and use; not all earlier expenditure is recoverable.

First ReturnSix-month Services windowPre-registration evidence

Current text

A Taxable Person may deduct Input Tax paid on Goods and Services supplied to him or which he imported prior to the date of registration, on the Tax Return of the first Tax Period after registration, if the following conditions are met: The Goods or Services received are for the purpose of making Taxable Supplies. The Goods have not been supplied before the date of registration. Capital Assets have not been fully used before the date of registration. The Services have been received within a period not exceeding six months prior to the date of registration. The Goods and Services were not subject to any restriction associated with the right to make a deduction provided for in the Agreement and this Law.

Application steps

  1. 1

    Separate goods, services and capital assets.

  2. 2

    Check dates, continued availability and qualifying use.

  3. 3

    Claim eligible amounts in the first return with supporting evidence.

Connected provisions

Direct legislative link

Regulations — Article (61)

Related Regulations Article (61)

This provision supplies the linked rule or procedure needed to apply the Article correctly.

Open connected Article

Official guides and tools

Official text

Value Added Tax Law

Article (44)

Official guide

VAT General Guide

Practical guidance relevant to the Article

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Review registration, transition and first-Return implications.

Connected Madar tools

VAT Return Centre

Review the Return disclosure, calculation and supporting evidence.

Illustrative example by Madar

Service received eight months earlier

A Service received eight months before registration falls outside the six-month window. Stock uses a different test: it must have been acquired within five years and remain in the Taxable Person's possession at registration.

Questions to help you apply it

  • Is this a good, service or capital asset?
  • Does it meet the applicable timing and use conditions?