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

Where an unregistered Person imports through a registered Agent, the Agent pays Import VAT before release. Recharging that VAT is not taxed again and the Agent cannot deduct it because payment was on the Customer's behalf.

Who should read this?

Import Agents, brokers, unregistered Customers and accounting teams.

Why does it matter?

The Agent is payer, not Input-VAT beneficiary. Do not deduct the amount or add VAT again on recovery; the agency fee has separate treatment.

Agent pays before releaseNo Agent deductionNo second VAT on recovery

Current text

A. If a Person who is unregistered for Tax in the Kingdom imports Goods via an agent who is registered for Tax acting on his behalf for the purpose of importing Goods into the Kingdom, the agent shall be obliged to pay the Tax due on Import prior to the release of such Goods. B. Tax shall not be due on the recharge of the Tax paid by an agent to his Customer in accordance with Paragraph A of this Article. Further, an agent shall not recover this Tax because the agent paid the Tax on behalf of the Customer. of Supply

Separate VAT and Agent fee

  1. 1

    Customer unregistered and Agent registered.

  2. 2

    Evidence agency for Import.

  3. 3

    Pay VAT before release.

  4. 4

    Do not book Agent Input VAT.

  5. 5

    Recover same amount without extra VAT.

  6. 6

    Invoice clearance fee separately.

Connected provisions

Thematic link

Regulations — Article (7)

Agency Supplies

Agency status controls chain; Article 23 gives special Import rule.

Open connected Article
Thematic link

Regulations — Article (11)

Expense recovery

This is a special payment-on-behalf case.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (23)

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

Agent paid BHD 800 Import VAT

A registered Agent pays BHD 800 for an unregistered Customer before release, recovers BHD 800 without extra VAT and does not deduct it, then invoices the clearance fee separately.

Questions to help you apply it

  • Customer unregistered?
  • Paid on behalf?
  • Wrong deduction?
  • Fee separate?