When should you use it?
As soon as a delay or error is found, before assuming a penalty amount, and after a decision is issued to identify the initial response route.
Source-backed knowledge content linked to official sources
Madar's fifth practical knowledge pathwaySource-backed knowledge content — linked to official sources
Breaches & Penalties Centre
It turns a vague question—‘Do I face a penalty?’—into an initial risk classification, a statutory range where it can be calculated, and an urgent correction or grievance-preservation step.
Before you begin
How can the Breaches & Penalties Centre help you?
Open this page after late registration, filing or payment, a VAT shortfall, an invoice breach, or receipt of a penalty decision.
Quick example
A business filed late and does not know whether it can correct now or needs urgent action. The Centre classifies the risk and shows the first step.
What will you get?
An initial risk classification, an indicative band where calculable, a response checklist and the distinction between correction and a penalty grievance.
Start with the breach classifier. Do not enter business or decision data; the Centre neither imposes a penalty nor submits a grievance.
Before estimating
Four rules before estimating any consequence
A penalty cannot be understood from an amount alone. Identify the breach, elapsed time, related VAT and whether a formal decision has already been issued.
Delay up to 60 days
The range is based on VAT that should have been declared or paid, not the sales or invoice value.
Late registration
A statutory administrative cap in the prescribed case; historic VAT and other consequences remain separate.
Other procedural breaches
A cap covering categories such as invoicing, data updates, notifications and NBR cooperation; it is not automatic.
The tool does not impose a penalty
The result is a knowledge indicator. An actual penalty arises only by a decision of the competent authority under the Law.
Madar tool
Breach classifier and urgent route
Choose the nearest event. Where the Law permits, the Centre shows an indicative statutory band and then provides an immediate action list.
Step 01
Which event is closest to your situation?
Choose only a general description. Do not enter a business, account or decision number.
Step 02
Initial classification
Choose the event and complete its general fields to see the route.
Administrative classification
Administrative penalty map
These categories do not establish a penalty in a particular case; they identify the legal basis and the cap or range from which review begins.
Late return or payment
Where delay does not exceed 60 days, the range uses VAT that should have been declared or paid.
Late registration
Failure to apply during the statutory stage may attract an administrative penalty up to BHD 10,000.
Incorrect data and VAT shortfall
For every month or part, applied to unpaid VAT arising from the additional value identified in the operations.
Procedural breaches
Includes invoices, data updates, VAT-inclusive prices, requested information and other contraventions.
High alert
Indicators that should not be treated as a simple administrative penalty
Some events may enter the tax-evasion framework where their legal elements are met. The tool does not determine criminal character; it raises the warning level and stops simplified calculation.
Continued failure to register, file or pay beyond the periods at which the Law moves the event into the evasion framework.
Input VAT deduction or adjustment without legal entitlement.
Claiming or obtaining an undue refund with knowledge.
Forged or artificial documents, records or invoices intended to avoid VAT.
No invoice for taxable Supplies, or a VAT invoice for a non-taxable Supply.
Failure to maintain records, Tax Invoices and accounting books regularly as required.
Penalty decision
Once a penalty decision is issued, a separate clock begins
Correcting the event alone does not preserve review rights. Separate breach remediation from the deadline and procedure for grieving the decision.
- 0130 days
Submit the grievance
Runs from notification of the decision under the rules and procedures before the Tax Appeals Review Committee.
- 02Pay the penalty
Admissibility condition
Admissibility requires payment of the administrative penalty under grievance, together with complete information and evidence; no separate grievance filing fee applies.
- 0330 + 15
Recommendation and decision
Thirty days for the Committee recommendation, then fifteen days for the ministerial decision after receipt.
- 0460 days
Court challenge
Against rejection, from notification or from the date the grievance is deemed rejected after the periods expire without notice.
Action file
Prevention and first-response file
Identify the event, date and VAT period precisely.
Retain the notice and decision, including electronic receipt time.
Reconcile the return, invoices, tax account and books.
Calculate underlying VAT and shortfall separately from the penalty.
Correct the obligation or contact the NBR through an official channel without delay.
Do not alter or destroy records after review or an information request begins.
Record the next deadline and responsible person within the business.
Obtain specialist support immediately where an evasion indicator or disputed decision appears.
Traceable
Legal map from breach to review
Classification starts with the Law; the Regulations complete notification, grievance admissibility, contents and procedure.
VAT Law
Executive Regulations
Official sources
Official sources
Official FAQ
Administrative penalties and tax evasion
Official distinction between administrative penalties, evasion indicators and sanctions.
Official FAQReviews and grievances
Available routes after a decision and requirements for review.
Official FAQTax Appeals Review Committee
Admissibility conditions and Committee procedure.
Legal textVAT Law
Provisions on penalties, evasion, grievances and objections.
Legal textExecutive Regulations
Notification, Committee procedure and admissibility requirements.
Electronic serviceNBR portal
Tax account, decisions, requests and electronic procedures.