VAT Refund is of the VAT paid more than the VAT payable to the National Bureau for Revenue shall be submitted by the Taxable Person to the Authority on the application prepared for such purpose. The refund request includes the value of the VAT demanded for the refund, the reasons, and the tax period. The aiding details and documents shall be attached to the application.

In all cases, to refund any Tax, the amounts claimed for refund must be decisive and undisputed. The delay leads to the forfeiture of the refund request.

Who should file a VAT refund in Bahrain?

Every registered Eligible person in Bahrain can request a refund of VAT paid for a given Refund period. The reporting of VAT information periodically in a refund application. VAT refund submission only by the Eligible Persons designated contact, a registered Agent or Representative

When should an Eligible person request a VAT refund in Bahrain?

Eligible Persons can apply for a refund and allow the Ministry of Foreign Affairs and NBR to review the request.

REFUND PERIOD

The period of purchasing activities for which Eligible Persons are required to keep a record. All the purchases and report them in the appropriate refund period.

REFUND DUE DATE

The last day of the Refund period month to submit their VAT refund.  Eligible Persons required to:

• Report the purchases recoverable for that refund period to NBR;
• Claim recoverable refund from NBR.

If Eligible Persons do not submit returns or submit after due dates, Eligible Persons can submit the request in the following period. It is the responsibility of Eligible Persons to comply. Due date falling on an official holiday, the Eligible Persons can request a refund on the next working day.

What is the VAT Refund schedule in Bahrain?

To facilitate the compliance process during the first year of refund for Eligible Persons, refund periods in 2020 will be different from those in subsequent years to cover 2019 as a transitional refund period.

After June 30, 2020, these transitional refund periods will no longer be applicable. Eligible Persons will be required to follow the six months refund periods from January 01 to January 31 and from July 01 to July 31 of each year.

What is the VAT Refund Process in Bahrain?

All VAT refunds should be submitted online using the NBR portal. The following are general rules to follow:

• One refund application per account. Two applications for two different IBANs are permitted.
• Amendments are not allowed when refunds are under process. It is only allowed if Eligible Persons receive a request to provide further information.

The steps are followed to file for Eligible Persons to refund

1. Access the Login page on the NBR website using the following link: https://www.nbr.gov.bh/.
2. Log in to the portal using your designated User ID and Password used during registration.
3. Click on the Refund button to raise the refund request.
4. Display instructions for the refund form. Select the instruction checkbox and click on the Next Step button. Eligible Persons must confirm and agree with the instructions to move forward with the application.
5. Eligible person details are displayed prepopulated based on registration details.
6. Select the Refund period to raise the refund request. Enter the amount to be refunded should be greater than 100 BHD. The Attachment and Notes section allows Eligible Persons to submit supplementary information to NBR. If deemed necessary, NBR and the Ministry of Foreign Affairs reserve the right to request additional information.  Save the form and upload all relevant documents.
7. Eligible Persons should download a sample refund attachment and explanations of the refund claim.
8. Enter notes and select the confirmation checkbox. Click on the Next Step button.
9. Select one of the IBANs in which the Eligible Person wants a refund from the dropdown.
10. Select the declaration checkboxes and click on Submit button.
11. Once the form is submitted, you will be redirected to a page confirming the successful submission of the application along with the Application number. Eligible Persons should also expect to receive an SMS and email.
12. The refund request is reviewed by the Ministry of Foreign Affairs and NBR. After reviews, requests can be fully approved and refund issued to provide IBAN, Partially approved, or Rejected. Eligible Persons should also expect to receive an SMS and email informing of the request’s status, along with the reasons for partial approval or rejects.

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