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

The NBR may refund Tax paid by a Bahrain-resident individual in another Implementing State on Goods brought into Bahrain where the individual is not VAT-registered, Goods value exceeds BHD 1,000 and payment in the other State is evidenced. Adjustment depends on an automated transfer or other agreed Member State mechanism; absent payment proof, Tax may be imposed on entry.

Who should read this?

Bahrain-resident individuals buying high-value Goods from an Implementing State.

Why does it matter?

The Article depends on an activated inter-state mechanism. The text alone does not prove an operational route at every date. Value must exceed, not equal, BHD 1,000, and payment and entry evidence must be retained.

Resident and not registeredMore than BHD 1,000Inter-state mechanism and payment proof

Current text

A. The Bureau shall be entitled to refund Tax paid by individuals in an Implementing State on Goods acquired by them, with consideration to the following: 1. The individuals should be resident in the Kingdom and not registered for Tax purposes. 2. Goods acquired from the Implementing State must have entered the Kingdom. 3. The value of the Goods acquired must exceed one thousand Dinars. B. The Tax shall be adjusted in accordance with the Automated Direct Transfer ) Mechanism applicable under the framework of the GCC Customs Union or in accordance with any other mechanism agreed between the Member States. C. Where no proof of payment is made in the other Member State, the Bureau shall be entitled to impose Tax on such Goods upon entry into the Kingdom.

Test the rule and active mechanism

  1. 1

    Confirm Bahrain residence and no registration.

  2. 2

    Check whether the other State is an Implementing State at the relevant date.

  3. 3

    Confirm value is more than BHD 1,000.

  4. 4

    Evidence Goods entry into Bahrain.

  5. 5

    Retain invoice and foreign Tax payment proof.

  6. 6

    Verify an active inter-state mechanism.

  7. 7

    Expect possible Tax at entry without proof.

Connected provisions

Direct legislative link

Law — Article (57)

Individual refund

The Law creates refund and this Article defines residence, value and mechanism.

Open connected Article
Thematic link

Regulations — Article (90)

Non-Resident refund

Article 90 is a business-cost route for Non-Residents, not this resident-individual route.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (87)

Official guide

VAT General Guide — Version 1.15

Refunds and enforcement

Current application

GCC Imports treatment

VAT Return guidance pending unified GCC system

Connected Madar tools

Connected Madar tools

Threshold calculator

Browse practical tools for all three taxes.

Illustrative example by Madar

BHD 1,000 is insufficient

A resident unregistered individual brings Goods worth exactly BHD 1,000 into Bahrain. The threshold is not met because value must exceed BHD 1,000. At BHD 1,200, payment proof, entry evidence and an active common mechanism are still required.

Questions to help you apply it

  • Resident and unregistered?
  • Actual Implementing State?
  • Value above BHD 1,000?
  • Active mechanism and proof?