TaxSavvyBH

Carry forward or refund VAT credit

Should I carry forward VAT credit or request a refund?

The situation

You can generally carry forward excess credit to later returns or ask for a refund.

The law

  • VAT Executive Regulations (Resolution No. 12 of 2018): Detailed rules on registration, tax periods, invoices and refunds

What it means for you

Carry forward is simpler if you expect to owe VAT soon. A refund suits exporters with steady credits. Refunds get more checks, so strong documents matter.

What to do

  1. Forecast VAT for the next periods.
  2. Pick carry forward or refund.
  3. Document the decision.
  4. Review quarterly.

We can do this for youVAT refund of excess input tax and non-resident refund claims: BHD 350

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