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

On application and once the conditions are met, the NBR may register two or more Bahrain-resident Taxable legal Persons as one Tax Group. Every member must be Related and registered when the application is made. A Person cannot join more than one Group; members are jointly liable, intra-Group transactions are disregarded for VAT, and withdrawal is barred for the first 12 months.

Who should read this?

Corporate Groups, Related legal Persons and finance, tax and senior-management teams.

Why does it matter?

A Tax Group is not merely an accounting convenience. It centralises registration and disregards internal transactions, but every member assumes real joint liability for Group VAT and obligations arising during membership.

Registered legal PersonsJoint liability12-month withdrawal restriction

Current text

A. The Bureau may register two or more legal Taxable Persons that are resident in the Kingdom, as one Tax Group, on their request and after meeting the following conditions: 1. All Persons shall be related. 2. All Persons shall be registered for Tax purposes at the date of applying for registration as a Tax Group. B. A Person shall not be a member of more than one Tax Group in the Kingdom. C. Each member of the Tax Group shall be jointly liable for the Tax due by the group, as well as for the Tax obligations arising during his Tax Group membership. D. Transactions undertaken between members of the same Tax Group shall not be considered Supplies for Tax purposes. E. Members of the Tax Group shall not withdraw from the group before a period of at least twelve months has passed from the date of joining the Tax Group.

Before applying for a Tax Group

  1. 1

    Confirm every member is a resident, registered Taxable legal Person.

  2. 2

    Evidence the relationship among all members.

  3. 3

    Confirm no member belongs to another Tax Group.

  4. 4

    Assess the invoicing, systems and accounting effects of disregarded internal transactions.

  5. 5

    Put joint liability before the relevant decision-makers.

  6. 6

    Do not apply Group consequences before NBR approval and the certificate effective date.

Connected provisions

Direct legislative link

Law — Article (30)

Tax Group registration

The Law creates the Group route and joint liability; this Article details membership and consequences.

Open connected Article
Direct legislative link

Regulations — Article (39)

Tax Group representative

It identifies who files and manages membership and dissolution notifications.

Open connected Article
Direct legislative link

Regulations — Article (42)

Tax Group registration procedure

It sets the application data, evidence, rejection grounds and new certificate.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (38)

Official guide

VAT Registration Guide — Version 1.10

Tax Group and registration

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

Service between Related companies

Two Related separately registered companies must continue applying the ordinary VAT rules to a service between them until the NBR approves the Group and its effective date begins. Common ownership alone does not disregard the transaction.

Questions to help you apply it

  • Is every member a resident, registered Taxable legal Person?
  • Are the relationship and all Group conditions evidenced?
  • Have joint liability and internal transactions been assessed?
  • What effective date appears on the certificate?