VAT Tourist Refund Scheme in Bahrain | What is the Tourist Refund Scheme in Bahrain?

What is the Tourist Refund Scheme in Bahrain?

VAT tourist refund scheme is a VAT refund scheme which will be applicable to the ‘overseas tourists’ visiting the Kingdom of Bahrain. The VAT paid by these overseas tourists who are on a tourism spree in the Kingdom of Bahrain will have their VAT amount refunded on the purchases that they have made.

The Kingdom of Bahrain became the third among the six Gulf Cooperation Council (GCC) member states to implement VAT in the region. Now that 1^st phase is already over, it has progressed towards the 2^nd phase of VAT implement in Bahrain. Businesses who have an annual turnover of BHD 37,500/- to BHD 500,000/- is required to mandatorily register in the 3^rd phase of VAT in Bahrain which is by 20^th December 2019.

With this progress, the National Bureau of Revenue has also introduced Tourist Refund Scheme for tourists entering in the Kingdom of Bahrain. Tourists entering Bahrain will be able to claim VAT on the purchases made within the country in case they meet the eligibility criteria to get the refund.

Who can be termed as an “overseas tourist”?

The term ‘overseas tourist’ means a natural person who is not a resident in any of the GCC VAT implementing States and who is not a crew member on a flight or aircraft leaving a GCC VAT implementing State.

Hence, tourists from a GCC VAT implementing State and crew members on a flight or aircraft leaving a GCC VAT implementing State are not included here.

Where can you Claim VAT Tourist Refund?

The VAT Tourist Refund in Bahrain can be claimed by the tourists in the Bahrain International Airport. A dedicated desk facilitates this Tourist Refund Scheme and the refund can be made by cash or card through an integrated system in which Planet Operates.

Who is eligible to claim VAT Tourist Refund Scheme in Bahrain?

• The goods should be purchased during the Tourist’s stay in the Kingdom of Bahrain
• The goods that are purchased goods should fall under the list of goods that are eligible for VAT refunds and those are acquired for personal use only
• The goods should be purchased from only authorized merchants who have registered for the VAT Tourist Refund Scheme
• The tourist should leave the Kingdom of Bahrain within two months from the date of purchase of the goods
• A minimum purchase of 100 BHD should be made by the tourist

What are the documents required for a tourist to validate the VAT Tourist Refund Scheme in Bahrain?

• The tourist should carry with themselves the sales receipt with the VAT Refund Tag that has been attached along with the receipt
• Purchased goods must be shown at the operating desk before the check-in of the luggage
• Passport of the validator should be shown
• Travel ticket of the validator must be shown

Which are the List of goods that will not be eligible for VAT Tourist Refund Scheme in Bahrain?

• Goods that are fully or partly consumed
• Motor vehicles, boats, and aircrafts
• Goods that are not accompanied by the Tourist at the time of leaving the Kingdom of Bahrain

How much refund will the tourist be eligible for and what is the fee?

The tourist will be eligible to receive 85% of the VAT paid on their purchases, minus a fee of 0.50 BD per VAT Free tag which has been validated.

How can businesses register for VAT Tourist Refund Scheme?

Vatable Businesses who would like to register for VAT Tourist Refund scheme should visit the operator – Planet’s website which facilitates the Registration Process for VAT Tourist Refund Scheme.

Registering for VAT Tourist Refund Scheme in Bahrain is an online process wherein you can register in three simple steps:

Step 1: Fill the online registration form

Step 2: Review the form and sign the online contract

Step 3: Submit all the documents that are necessary

What are the documents and information that should be provided after you register for VAT Tourist Refund Scheme with the planet?

• Tax Registration Certificate (TRN)
• Trade License Certificate
• Power of Attorney (in case it is applicable when the signatory is not named in the trade license)
• Specimen of the signature of the signatory
• Signed Credit Check Consent Form
• Signed Contract

Are you looking for VAT Services in Bahrain?

Emirates Chartered Accountants provides one of the best VAT Services Bahrain possessing a wide array of services. Even before the implementation VAT of Bahrain, we have been serving our UAE clients since the inception of VAT in UAE from 1st January 2018 with over 1000 happy customers.

What do we Offer? 

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