Bahrain’s National Bureau for Revenue released guidance version 1.5 on March 11 2026 clarifying that VAT paid as deposits during import is not immediately recoverable. Registered persons must obtain a customs declaration receipt confirming a ‘VAT confiscation’ status before they can reclaim the VAT, and the recovery must occur within five years from the end of the calendar year in which the deposit becomes recoverable.

The Bahraini National Bureau for Revenue released updated guidance on VAT treatment of real‑estate lease incentives on 29 January 2026. The guide clarifies that rent reductions and rent‑free periods are exempt, while reimbursements for fit‑out contributions are taxable. It also provides examples of common lease incentives used by landlords.

The Bahrain Tax Agency released an updated VAT general guide in English on Jan. 28, 2026. The guide clarifies that outsourced services are taxable, VAT is due on full consideration when third‑party providers assign roles under direct supervision, and employee salaries remain outside VAT. These updates aim to provide clearer guidance for businesses operating in Bahrain.