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 on Import is ordinarily paid to Customs where Bahrain is the First Point of Entry. An approved Taxable importer may defer it, disclose it in the Return and deduct it only where the deduction conditions are met.

Who should read this?

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

Why does it matter?

Import deferral changes disclosure and payment timing under an approval; it is not an exemption.

First Point of EntryApproved deferralReturn disclosure

Current text

An Importer shall pay the Tax due on import if the Kingdom is the First Point of Entry, in accordance with the provisions of this Law, to Customs Affairs at the Ministry of Interior in accordance with the procedures, regulations and conditions determined by the Bureau. Notwithstanding the provisions of Paragraph A of this Article, the Bureau may allow the Importer who is a Taxable Person to defer payment of the Tax due on imported Goods for the purposes of its Economic Activity. The Importer who is a Taxable Person shall, in this case, declare the deferred Tax due in his Tax Return, and the declared deferred Tax due shall be deductible in accordance with the provisions of this Law. The Regulations shall specify the provisions, rules and procedures necessary for applying the provisions of this Article.

Application steps

  1. 1

    Identify the first entry point and registered importer.

  2. 2

    Check a valid deferral approval.

  3. 3

    Reconcile customs declarations with return disclosure and eligible deduction.

Connected provisions

Direct legislative link

Regulations — Article (65)

Related Regulations Article (65)

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 (51)

Official guide

VAT General Guide

Practical guidance relevant to the Article

Connected Madar tools

Connected Madar tools

VAT Return Centre

Review the Return disclosure, calculation and supporting evidence.

Illustrative example by Madar

Approved Import VAT deferral

An importer approved for deferral still reports the Import VAT in the Return and deducts it only to the extent that the deduction conditions are satisfied.

Questions to help you apply it

  • Is Bahrain the first entry point?
  • Is the deferral approved and the customs amount reconciled?