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

The NBR may refund VAT to specified categories, including a Taxable Person with excess VAT, eligible foreign or international bodies, a Bahrain Taxable Person that paid VAT in another Implementing State for its activity, and tourists, subject to the Regulations.

Who should read this?

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

Why does it matter?

Refund eligibility does not mean immediate cash payment; determine the claimant, evidence and potential set-off.

Specified claimantsApplication and evidenceReview and set-off

Current text

Without prejudice to the provisions ofArticles 65 to 69 of the Agreement, the Bureau may refund the Tax paid for any Supply or import in the following cases: ATaxable Person who paid Tax in excess. Foreign governments, international organisations, institutions, consular and military bodies and missions, for Goods and Services supplied within the Kingdom. A Taxable Person in the Kingdom who paid Tax in another Implementing State for the purpose of carrying on his Economic Activity. Tourists. The Regulations shall determine the conditions, terms and procedures for applying the provisions of this Article. Tax that meets the refund requirements shall be paid from the account of amounts withheld from the proceeds of Tax revenue and administrative fines for the purposes of covering refund claims.

Application steps

  1. 1

    Identify the claimant category and legal ground.

  2. 2

    Reconcile the amount to returns, invoices and the account.

  3. 3

    Submit supporting documents and track information or set-off requests.

Connected provisions

Direct legislative link

Regulations — Article (86)

Related Regulations Article (86)

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 (57)

Official guide

VAT General Guide

Practical guidance relevant to the Article

Connected Madar tools

Connected Madar tools

Payment and Refund Centre

Review payment, credit, refund and set-off routes.

Illustrative example by Madar

Credit balance on a Return

A credit shown on a Return is not automatically transferred to the bank. The Taxable Person chooses the available refund or carry-forward route, subject to review and set-off.

Questions to help you apply it

  • Who is entitled to claim?
  • What proves the amount and are other liabilities outstanding?