English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

A single-purpose Voucher exchangeable for Supplies with one Tax treatment is taxed on issue using Consideration paid. A multi-purpose Voucher is taxed when exchanged, using Consideration paid or face value where Goods or Services value is not specified.

Who should read this?

Retailers, restaurants, platforms and gift-card issuers.

Why does it matter?

Card format does not determine timing. Identify available VAT treatments at issue: known treatment brings earlier Tax; multiple possible treatments defer Tax to redemption.

Single: issueMulti: redemptionAvailable treatment controls

Current text

A. For single-purpose Vouchers which can be exchanged for Goods or Services subject to the same Tax rate, the date of Supply of the Voucher is its issue date. Tax shall be due based on the Consideration paid for the Voucher at the date of Supplying the Voucher. B. Tax is due on multi-purpose Vouchers at the date of Supplying the Goods or Services which are exchanged for the Voucher on the basis of the value of the Consideration paid for the Voucher, or the face value of the Voucher where the value of the Goods or Services is not specified. Supply

Classify before issue

  1. 1

    List redeemable Supplies.

  2. 2

    Check if one treatment and rate.

  3. 3

    For single-purpose, tax issue Consideration.

  4. 4

    For multi-purpose, track redemption.

  5. 5

    Use face value where required.

  6. 6

    Separate paid Voucher from discount coupon.

Connected provisions

Direct legislative link

Law — Article (7)

Vouchers

This Article details timing and value by type.

Open connected Article
Thematic link

Regulations — Article (52)

Invoice

Documents must avoid taxing both issue and redemption.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (15)

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Coffee card and shopping-centre Voucher

A BHD 22 card usable only for one-treatment drinks may be single-purpose and taxed on issue. A shopping-centre Voucher usable for Supplies with different treatments is tested as multi-purpose and taxed on redemption.

Questions to help you apply it

  • Redeemable choices?
  • One treatment?
  • Consideration paid when?
  • Redemption when?
  • VAT duplicated?