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 free gift or sample is not Deemed Supply where Market Value excluding VAT does not exceed BHD 50 per recipient per year and the Taxable Person's annual free Goods total does not exceed BHD 1,000. A sample must promote evaluation and not final consumption unless consumption is essential to promotion.

Who should read this?

Marketing, sales, inventory and approval teams.

Why does it matter?

Both recipient and business-wide limits apply. Splitting gifts does not avoid annual aggregation, and calling a full product a sample is insufficient.

BHD 50 per recipient yearlyBHD 1,000 totalEvaluation sample

Current text

A. Supplies of Goods provided without Consideration shall not be treated as Deemed Supplies if the Taxable Person Supplies free gifts or samples, provided that their Market Value does not exceed fifty Dinars exclusive of Tax, per recipient, during a year. B. The threshold of annual Supplies of gifts, samples and Goods that a Taxable Person may provide without Consideration in accordance with Paragraph A of this Article is one thousand Dinars during the year. C. Samples disposed of without Consideration must be a specimen of a product intended to promote the sale of the product and which allows the characteristics and quality of that product to be assessed without resulting in final consumption, except where the final consumption is essential to the promotion of such product.

Before releasing gift or sample

  1. 1

    Use Market Value excluding VAT.

  2. 2

    Aggregate recipient year.

  3. 3

    Aggregate all business free Goods.

  4. 4

    Meet both BHD 50 and BHD 1,000 limits.

  5. 5

    Evidence promotional sample size and purpose.

  6. 6

    If failed, test Deemed Supply.

Connected provisions

Direct legislative link

Law — Article (10)

Deemed Supply

This Article sets gift and sample exception limits.

Open connected Article
Thematic link

Regulations — Article (9)

Other exceptions

No Input deduction or exemption can also prevent Deemed Supply.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (8)

Connected Madar tools

Connected Madar tools

VAT Return Centre

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

Illustrative example by Madar

Two BHD 40 gifts to one recipient

Two BHD 40 gifts total BHD 80 for the recipient and exceed BHD 50 even if the business total is below BHD 1,000. Exactly BHD 50 does not exceed the limit if all other conditions hold.

Questions to help you apply it

  • Recipient annual total?
  • Business annual total?
  • Value excluding VAT?
  • True promotional sample?