A VAT refund guide to Bahrain
Which countries have reciprocity with Bahrain?
Learn more about how reciprocity works within VAT by clicking below.
What expenses are claimable in Bahrain?
Entertainment
Events
Travel Related
General Expenses
Additional Information
| Current VAT Rate | 10% |
| Categories | Entertainment, Events, Travel Related, General expenses |
| VAT in local language | Value Added Tax (VAT) |
| 99999999999999 (15 numeric digits) | |
| Exemptions | Fuel, Public Transport, Taxis, Entertainment |
| Key Deadlines | 31st March |
| Threshold |
Non-Simplified: More than BHD 500 (including VAT) Simplified: BHD 500 or less (including VAT) Super simplified: Not applicable to this VAT scheme |
| Electronic Invoicing | Bahrain has not yet mandated e‑invoicing but, following a November 2023 VAT guide relaxing prior approval requirements, businesses can issue electronic invoices voluntarily. The National Bureau for Revenue is consulting publicly on a phased e‑invoicing rollout – likely modelled on Saudi Arabia – but full technical and compliance details remain pending mid‑2025 |
Frequently Asked Questions
1. Who is eligible for a VAT refund in Bahrain?
Generally, a business will be entitled to claim a refund of VAT incurred in Bahrain if it is not registered for VAT in Bahrain (and thus does not have a VAT registration number in Bahrain) and does not make taxable supplies that would be subject to VAT in Bahrain. The business would also need to be established in a country that offers reciprocal treatment to Bahraini businesses in relation to VAT refunds.
2. Are there multiple VAT rates applied in Bahrain?
No. Like most of the GCC countries, there is only one Bahrain VAT rate.
3. Is there a claim minimum applicable for VAT refunds in Bahrain?
Bahrain VAT refund claims must exceed BHD 200 for them to be processed.
4. What documentation is necessary for VAT refund claims in Bahrain?
In addition to the invoices for which a VAT refund in Bahrain is being requested, the following documents would need to be submitted: bank account details, a valid tax certificate, certificate of incorporation of the claimant, completed claim form and documents relating to the entity’s appointed agent (if applicable – for example if the business appointed VAT IT to submit the VAT refund application on its behalf).
5. Can a business still reclaim VAT in Bahrain if the invoice contains errors?
Generally an invoice that contains errors would not be eligible to be submitted as part of a VAT refund in Bahrain. The entity would need to contact the supplier to have the error corrected in order for the corrected invoice to be submitted as part of a Bahrain VAT refund application. This is something that VAT IT would be able to assist with.
6. What are the applicable periods for submitting VAT refund claims in Bahrain?
The Bahraini VAT Authority only allows for a single claim to be submitted by 31 March for VAT incurred between January and December of the previous year.
Explore VAT reclaim opportunities in
Nearby Countries
Saudi Arabia
United Arab Emirates
Spain
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