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.
Where the same inputs support taxable and exempt Supplies, only the proportion attributable to Supplies carrying a deduction right may be deducted under the apportionment method in the Regulations.
Taxable Persons, finance teams and advisers applying this Article to a Bahrain VAT position.
Allocate common input VAT rather than claiming or rejecting it in full without analysis.
Current text
Application steps
- 1
Directly attribute inputs to taxable or exempt supplies first.
- 2
Apply the prescribed apportionment to shared costs.
- 3
Retain annual adjustments and approval for any alternative method.
Connected provisions
Official guides and tools
Connected Madar tools
Shared office rent
Where one office supports both taxable and exempt activities, its VAT is not automatically deducted in full; the common amount must be apportioned under the prescribed method.
Questions to help you apply it
- Is the input direct or shared?
- What supports the percentage and annual adjustment?