- Bahrain’s NBR released updated VAT guidance (Version 1.5) on March 11, 2026, focusing on import deposits and VAT recovery.
- VAT paid as deposits during imports are not immediately recoverable as input VAT; they are considered deposits against potential future liabilities.
- To recover input VAT, the deposit must be officially transferred to a “VAT confiscation” state by Customs Affairs, and proper documentation must be obtained.
- VAT can be recovered through the VAT return or within five years from the end of the calendar year in which it became recoverable.
Source: docnova.ai
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.
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