Bahraini VAT returns

VAT‑registered persons in Bahrain file returns periodically. The standard period is monthly (the VAT period is the calendar month following the end of each month). 

There is also a provision for a simplified return form for eligible small VAT payers (for example, those with annual supplies below BHD 100,000 and not part of a VAT group) who may use simplified filing. 

VAT returns must be submitted by the last day of the month following the end of the VAT period. Payments must be made by the same deadline as the submission of the return. 

Businesses must maintain comprehensive VAT records, including sales and purchase invoices, imports/exports documentation, and other transaction‑level data. These records must support the VAT return figures. For Bahrain, all VAT payers (even those that do not make taxable supplies in a period) are required to submit a nil return if registered. 

VAT payments are due at the same time as the VAT return. Late payments may incur interest and penalties per Bahrain’s VAT rules. 

Input VAT may be reclaimed by VAT‑registered businesses on goods and services that are directly used for taxable business activities in Bahrain, provided they meet the conditions set out by the NBR. To qualify, purchases must be for legitimate business use. Common examples of deductible input VAT include:

• Goods purchased for resale
• Capital assets and business equipment 
• Professional services and utilities used in the business
• Import VAT on goods used in the business 

For mixed-use expenses (partly for business and partly for personal use), VAT deduction must be apportioned according to Bahrain’s VAT rules. 

All VAT returns must be submitted electronically via the NBR online portal. Payments are made via bank transfer or specified electronic payment methods referenced by the NBR. 

Penalties for noncompliance include the following:

• Late filing of VAT returns may incur fines or interest (exact amounts depend on NBR’s schedule). 
• Late payment of VAT due leads to interest and possibly additional surcharges.
• Incorrect or fraudulent returns can result in further sanctions as per Bahraini VAT law.

If input VAT exceeds output VAT in a given period, the resulting VAT credit may be carried forward to subsequent periods or claimed for refund in accordance with NBR rules. The VAT Return Filing Manual gives guidance on refunds and carry‑forward mechanisms.