Expense rules in Bahrain.
All NBR rules: 10% VAT, mission allowances and VAT recovery rules in Bahrain.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 10% | 100% reclaimable | If business legitimate |
| Travel meals | 10% | 100% reclaimable | Per diem cap |
| Accommodation | 10% | 100% reclaimable | Tax invoice |
| Fuel | 10% | 100% reclaimable | Business records |
| Bus / flight | 10% | 100% reclaimable | Public transport |
| Taxi | 10% | 100% reclaimable | Receipt required |
| Client gifts | 10% | Limited | NBR cap |
| Parking | 10% | 100% reclaimable | Tax invoice |
VAT 10%
Bahrain 1st GCC to move to 10%.
Per diem
MNC standard.
Retention
NBR records: 5 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | BHD 0,150/km | By company | Standard practice |
MNC practice
Private sector standard.
Records
Date, destination, km.
Subvention
Subsidized fuel.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Manama | BHD 25 | BHD 100 | BHD 125 |
| Senior executive | BHD 60 | BHD 200 | BHD 260 |
| Foreign — Dubai | BHD 50 | BHD 180 | BHD 230 |
| Foreign — Riyadh | BHD 50 | BHD 180 | BHD 230 |
| Foreign — London | BHD 100 | BHD 400 | BHD 500 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on invoice.
No statutory rate
No NBR cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Bahrain → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| BH VAT for foreign | Visitor refund | On exit | Limited refund scheme |
Tourist refund
Limited tourist refund.
No B2B
No general B2B procedure.
Outbound
BH company recovers EU VAT via 13th Directive.
Industrialize your Bahrain expenses with Illizeo.
10% VAT (1st GCC), MNC per diem, multi-currency BHD↔USD↔EUR↔CHF: all the NBR rules above are natively integrated into Illizeo.
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