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

When a statutory Supply-value adjustment occurs, the Supplier issues and delivers the Law Article 41 correction document to the Customer and adjusts Tax due in the Tax Period of the adjustment event. Bad debt is adjusted only when its specific conditions are met.

Who should read this?

Invoicing, Returns, sales, purchases and review teams.

Why does it matter?

Adjustment is not a silent rewrite of the original invoice or Return. It needs a Customer-linked document, an event date determining the period and a separate bad-debt gateway.

Correction documentDeliver to CustomerEvent Tax PeriodBad-debt conditions

Current text

A. The Taxable Person shall issue the necessary correction documents stipulated ( in Article 41 of the Law and deliver them ( to the Customer in any of the cases mentioned in Article 28 of the Law. B. The Taxable Person shall adjust the Tax due for the Tax Period during which any of the cases stipulated in Article 28 of the.( Law occur. C. If the conditions relating to Bad Debts are met, the Taxable Person may adjust the ( Tax due in accordance with Article 28 of the Law. Registration

Implement value adjustment

  1. 1

    Identify statutory reason.

  2. 2

    Evidence event date.

  3. 3

    Issue required correction document.

  4. 4

    Deliver and retain evidence.

  5. 5

    Adjust in event period.

  6. 6

    For bad debt, first test Article 30.

  7. 7

    Reconcile both parties.

Connected provisions

Direct legislative link

Law — Article (28)

Value-adjustment cases

It defines adjustment events.

Open connected Article
Direct legislative link

Law — Article (41)

Correction documents

It prescribes the document.

Open connected Article
Direct legislative link

Regulations — Article (30)

Bad debt

Its conditions precede adjustment.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (32)

Connected Madar tools

Connected Madar tools

VAT Return Centre

Check return deadlines, calculate net VAT from entered amounts, and identify a correction route.

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 100 reduction after a BHD 1,000 sale

A valid event in September reduces an earlier BHD 1,000 sale to BHD 900. The Supplier issues and delivers the correction document and adjusts VAT in the September Tax Period; the old invoice or Return is not silently overwritten as if the event already existed.

Questions to help you apply it

  • Adjustment reason?
  • Event date?
  • Document issued?
  • Delivered?
  • Which Tax Period?
  • Bad debt?