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.
A Taxable Person may carry excess recoverable Net VAT forward. The NBR may set the credit off against VAT or administrative penalties due under tax laws until the credit is exhausted.
Taxable Persons, finance teams and advisers applying this Article to a Bahrain VAT position.
A credit balance may be used against existing liabilities; track its actual movement before treating it as available cash.
Current text
Application steps
- 1
Confirm the credit in the return and tax account.
- 2
Identify outstanding taxes and penalties.
- 3
Record the carry-forward or refund choice and any set-off.
Connected provisions
Official guides and tools
Connected Madar tools
Credit balance with an outstanding penalty
The NBR may set an otherwise refundable credit against an outstanding administrative penalty before any balance is refunded or carried forward.
Questions to help you apply it
- What credit is confirmed?
- Has any part already been used against another liability?