Bahrain: Foreign VAT recovery deadline March 31, 2026.

VAT refund in Bahrain for foreign businesses

Bahrain introduced Value Added Tax (VAT) on 1 January 2019 under the GCC Unified VAT Agreement. The standard VAT rate was initially set at 5% and increased to 10% as of 1 January 2022. VAT applies to most supplies of goods and services made in Bahrain, unless specifically zero-rated or exempt.
Non-resident businesses that incur VAT in Bahrain in the course of their business activities may be entitled to recover that VAT through a refund mechanism, provided certain conditions are met. The refund procedure is governed by Article 90 of the Executive Regulations of the Bahrain VAT Law and administered by the National Bureau for Revenue (NBR).

Who Can Apply?

A foreign company may claim a VAT refund if:

• It did not make taxable supplies in Bahrain (or any GCC implementing state) that would trigger a VAT registration obligation.
• It is registered for VAT or a similar tax in its country of residence.
• The VAT was incurred in Bahrain for business purposes.

Refunds are also available to businesses established in other GCC implementing states and, in practice, may depend on reciprocity. Countries that generally operate reciprocal refund schemes include EU Member States, the United Kingdom, Switzerland, Norway, Canada, Japan and South Korea (subject to confirmation in each case).

What Expenses Can Be Refunded?

VAT may be recoverable on business-related costs incurred in Bahrain, including for example:

• Hotel accommodation and business travel
• Trade fairs, exhibitions and conference fees
• Marketing and advertising services
• Professional services (legal, consulting, accounting)
• Office rental and related services
• Transport and logistics services
• Import VAT on goods used for business purposes

All claims must be supported by valid tax invoices, and VAT relating to non-business or exempt activities is not recoverable.

How to Apply

The refund must be requested using the official Refund Request Form issued by the National Bureau for Revenue.

The form is available on the NBR website:
https://www.nbr.gov.bh
(Section: VAT → VAT Refunds → Refund for Foreign Businesses)

The completed, wet-signed and stamped application — together with all required supporting documents — must be submitted directly by the applicant to:

[email protected]

Appointment of an agent to submit the application is not permitted.

Deadline and Minimum Amount

• The claim must cover one calendar year.
• It must be submitted within 3 months following the end of that year (e.g. by 31 March 2025 for VAT incurred in 2024).
• Only one claim per year is allowed.
• The minimum refund amount is BHD 200.

Processing and Payment

The NBR should process the application within 3 months of submission. Refunds can be paid to a non-Bahraini bank account. Any bank charges or currency conversion costs are borne by the applicant.

Sources:

Information guide, online publication of National Bureau for Revenue