Bahrain Updates VAT Deposit Recovery Rules for Imports and Exports in New NBR Guidance

Bahrain’s NBR updated its Imports and Exports VAT guide on 11 March 2026.
The update clarifies that VAT paid as a deposit on imported goods is not immediately recoverable.
VAT deposits become recoverable only if confiscated by Customs Affairs and proper documentation is provided.
Once in “VAT confiscation” status, the VAT can be reclaimed in the VAT return for that period or within five years, if all other input VAT recovery conditions are met.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.