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 issues a Net Tax assessment where the Taxable Person calculated Tax incorrectly. The decision must state reasons, facts, information and legal basis; Net Tax and differences due; and the payment due date, and must be notified to the Taxable Person.

Who should read this?

Taxable Persons receiving assessment decisions and their tax, accounting and legal teams.

Why does it matter?

Do not treat the decision as an unexplained number. Breaking down reasons, facts, legal basis and differences identifies whether the dispute concerns fact, classification, calculation or evidence and which response route applies.

Reasons, facts and legal basisNet Tax and differencesStated payment date

Current text

A. The Bureau shall issue its decision to assess the Net Tax if it is proven that the Taxable Person has incorrectly calculated Tax. The decision to assess and re-impose Tax shall include, at least, the following: 1. The reasons for the assessment, facts, information and legal basis for the reassessment. 2. The value of the Net Tax and the Tax differences due. 3. The due date for payment of Tax due after the Bureau’s assessment. B. The Bureau shall notify the Taxable Person of its decision to assess Net Tax specifying the date on which the Tax shall be paid.

Analyse the assessment line by line

  1. 1

    Record notification date and method.

  2. 2

    Extract every reason, fact and information item.

  3. 3

    Identify legal basis for each adjustment.

  4. 4

    Reconcile Net Tax and differences to periods and Returns.

  5. 5

    Record payment date.

  6. 6

    Collect evidence for each disputed point.

  7. 7

    Distinguish assessment review, objection and penalty grievance.

Connected provisions

Direct legislative link

Law — Article (49)

Net Tax assessment

The Law grants assessment power and this Article defines minimum decision contents.

Open connected Article
Direct legislative link

Regulations — Article (94)

Notification

Sending date starts linked periods.

Open connected Article
Thematic link

Regulations — Article (95)

Review Committee

It sets later dispute admissibility and contents.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (92)

Connected Madar tools

Connected Madar tools

Audit and Assessment Centre

Identify the audit or assessment-review stage and prepare an action list and report from your answers.

Illustrative example by Madar

BHD 1,200 difference

A Return shows BHD 5,000 Net Tax and the NBR assesses BHD 6,200. The BHD 1,200 figure alone is not enough: the decision should identify an omitted Supply, denied Input Tax or calculation error, with facts, basis and payment date. The response addresses that reason.

Questions to help you apply it

  • Reason for each difference?
  • Which facts and information?
  • Legal basis?
  • Payment date?
  • Evidence for each point?