VAT Refund in Bahrain for Eligible person

As per the Bahrain VAT Law, there are some persons who meet the requirements to apply for VAT Refund when they make their regular purchases. They are termed as “eligible persons” who have the privilege to apply for VAT Refund even for domestic purchases.

Who is an “Eligible Person” qualifying for VAT Refund in Bahrain for domestic purchases?

As per the Bahrain VAT Law, “Eligible Persons” are: “International entities in Kingdom of Bahrain including; Foreign Governments, Diplomatic Missions and Institutions, International Organizations, Consular and Military Bodies”

To know and determine the eligibility of an “eligible person” one should be sure that the definition binds the criteria of “eligible person” as per the Bahrain VAT law should be met. Only then one can be termed or has the privileged to apply for VAT Refund on domestic purchases.

Should an “Eligible Person” for VAT Refund Register for VAT in Bahrain?

Yes, an “Eligible Person” for VAT Refund should register for VAT in Bahrain. It is their responsibility to register for VAT Refund purposes with the National Bureau for Revenue (NBR).

Only one they are registered with the NBR they shall be acknowledged as “eligible person” for VAT Refund in Bahrain. They shall be able to request for VAT Refund in Bahrain and will be able to claim the Input VAT on the expenses they have made for their domestic supplies. This refund can be made only to the extent as entitled to do so.

What do you mean by “Eligible Persons” Refund?

As mentioned, that “eligible person’s” in Bahrain can apply for VAT Refund for their domestic purchases. Eligible Person refund is an official set of documents that the eligible person submits to the Ministry of Foreign Affairs and NBR. It is a summary of detailed purchases made by registered “eligible person” who can recover VAT made for their domestic purchases in the given Refund period. 

Who can file refund for “Eligible Persons”?

“Eligible Persons” registered in Bahrain for VAT refund can request for a refund during a certain period. The VAT refund should be applied on a periodic basis in the refund application.

The filing of VAT Refund for “eligible person” can be done by any designated contact or person authorized by the “eligible person” to act on their behalf. They can also have a registered agent or a representative.

When can “eligible person” request for a VAT Refund?

Refund Period: The time when purchases are made by “eligible persons”, they should keep a record of all the purchases they have made and report with the records in the refund period.

Refund Due Date: the “eligible persons” are required to submit their eligible person refund on the last day of the refund period month.

“Eligible persons” should:

• Report the details of all the purchases for that particular VAT refund period to the NBR;
• Claim only for a recoverable refund from the NBR

What if an “eligible person” misses filing for the Refund?

If an “eligible person” for VAT Refund in Bahrain missed submitting the return within the due dates they can submit the request in the following period.

It is solely the responsibility of an “eligible person” comply with the rules and regulations for VAT Refund. If the tax due date falls on an official holiday in Bahrain, the Eligible Persons can request a refund on the next working day.

What is the VAT Refund Process for “eligible persons” in Bahrain?

The VAT Refund process of all “eligible persons” should be submitted online through the NBR portal only.

General rules:

• Only one refund application for per registered account
• Two applications for two different IBAN are permitted now
• Amendment for an application not allowed when refund is under process
• Amendments will only be allowed if a request for more information is received

STEPS to file for “Eligible Persons” VAT Refund in Bahrain

Step 1: Login from the NBR website using the following link: https://www.nbr.gov.bh/  use Google Chrome for optimal utilization.

Step 2: Log in to the portal using your  User ID and Password (used during registration).

Step 3: A “Refund” button will appear where you have to click it to request for VAT Refund.

Step 4: Instructions will be displayed for refund form. Select the instruction checkbox and click on Next Step button. Eligible Persons must confirm and agree with the instructions to move forward with the form. The Eligible person details will be displayed which is prepopulated based on registration details.

Step 5: Select the Refund period to raise the refund request. Enter the amount you wish to refund and it should be greater than 100 BHD.

Step 6: In the “Attachment and Notes” section submit your documents (e.g. invoices, payment information) to NBR.

Step 7: Download a sample refund attachment and should provide further explanations of the refund claim, if any. Enter notes and select the confirmation checkbox. Click on Next Step button.

Step 8: Select one of the IBANs in which Eligible Person wants the refund to be disbursed from “Please choose an IBAN” dropdown.

Step 9: Select the declaration checkboxes and click on the Submit button.

Once the VAT Refund form is submitted, the registrant will be redirected to a page confirming the successful submission of VAT Refund along with the Application No. Eligible Persons will also receive an SMS and email confirming the submission of VAT Refund for the “eligible person”

The submitted VAT refund by the “Eligible Person” shall be reviewed by Ministry of Foreign Affairs and NBR.

Upon the review of VAT Refund request, the authority can:

• fully approved and refund can be issued to the provided IBAN
• Partially approved
• Reject

A test message or an email informing about the VAT request’s status, along with the reasons for partial approval or rejects shall also be sent.

Our Tax Experts in Emirates Chartered Accountants Group Bahrain believe in a proactive approach to tax advisory services with a cost-effective and tailor-made option that is preferred by businesses all over. Our team of professionals is well versed with the Bahrain VAT Law as well as the UAE VAT Law  They are also equipped with practical experience of implementing VAT in UAE and VAT in Bahrain.

Our wide range of services includes:

• VAT Registration
• VAT Training 
• VAT Implementation 
• VAT Return Filing Service
• VAT Consultancy 
• Accounting for VAT Compliance

We’d be happy to support you – Call us!