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 discount granted at the time of Supply follows the Law's Supply-value conditions; a discount or subsidy changing Consideration after Supply is a later value adjustment. Government subsidies include subsidies granted by any Government Body.

Who should read this?

Sales, marketing, accounts and government-subsidy recipients.

Why does it matter?

An original invoice discount and a later rebate belong to different document and Tax Period routes. Subsidies also require analysis of their link to price.

Discount at SupplyLater discountValue adjustmentGovernment Body subsidy

Current text

A. Discounts provided at the time of Supply ( shall be treated in accordance with Clause.( 1 of the first paragraph of Article 24 of the Law. B. Discounts provided after the Supply shall ( be treated in accordance with the provisions of Article 28 of the Law. C. For the purposes of applying Clause 2 of ( the first paragraph of Article 24 of the Law, State subsidies shall include subsidies granted by Government Bodies.

Identify discount timing

  1. 1

    When did entitlement arise?

  2. 2

    Tie conditions to contract and invoice.

  3. 3

    Date the later adjustment event.

  4. 4

    Issue the correct document.

  5. 5

    Test subsidy link to price.

  6. 6

    Keep rebate or subsidy evidence.

Connected provisions

Direct legislative link

Law — Article (24)

Discounts and subsidies

It governs value at Supply.

Open connected Article
Direct legislative link

Law — Article (28)

Value adjustment

It governs changes after Supply.

Open connected Article
Direct legislative link

Regulations — Article (32)

Adjustment procedure

It sets document and Tax Period.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (29)

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

BHD 1,000 invoice then BHD 100 rebate

A BHD 1,000 invoice is followed by a BHD 100 incentive earned after Supply. The original invoice is not silently rewritten as BHD 900; the rebate follows the Law Article 28 value-adjustment route with the correct document and period.

Questions to help you apply it

  • When earned?
  • On original invoice?
  • Why later?
  • Correction issued?
  • Subsidy linked to price?