Tax Refund Claims
Written in plain language for general understanding. This is educational content, not legal advice. Based on Bahraini national legislation, decree-laws, and ministerial orders.
Bahraini National Law
What is this right?
Businesses that have overpaid VAT or have excess input tax credits can claim refunds from the NBR:
- Input tax excess: If the VAT you paid on business purchases exceeds the VAT you collected on sales, you can claim a refund for the difference.
- Overpayment: If you paid more VAT than was due (calculation error, duplicate payment), you can request a refund.
- Tourist refund: Bahrain has introduced a VAT refund scheme for tourists allowing visitors to reclaim VAT on purchases when departing.
- Processing time: The NBR aims to process refund claims within 60 days of a complete application.
- Carry forward: Instead of a refund, you can choose to carry forward the credit to offset future VAT liabilities.
When does it apply?
- Your VAT return shows a net refund position (input tax exceeds output tax).
- You made an overpayment to the NBR.
- You are a tourist departing Bahrain with eligible purchases.
What should you do?
- File the refund claim through the NBR portal with supporting documentation.
- Ensure all invoices and proof of payment are attached to the claim.
- For tourist refunds, keep your original receipts and process the claim at the airport before departure.
- Follow up with the NBR if processing exceeds 60 days.
What should you NOT do?
- Do not inflate refund claims — fraudulent claims carry severe penalties including criminal charges.
- Do not claim input tax on personal expenses — only business-related VAT is recoverable.
- Do not submit incomplete documentation — missing invoices delay processing.
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