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NBR Penalty Matrix

What happens when things go wrong — the full NBR penalty regime.

COMPLIANCEMarch 2026 · 6 min read

Penalty Matrix

Offence Penalty Cap
Late VAT registration BD 1,000 Fixed
Late VAT return filing BD 500-5,000 Per return
Late VAT payment 5% of tax + 1% per month
Incorrect return BD 500-5,000 Per error
No tax invoice BD 1,000-5,000 Per instance
Tax evasion 3× tax evaded + imprisonment

💡 Voluntary Disclosure

Discover an error? Voluntary disclosure significantly reduces penalties. File a corrective return within 60 days. NBR treats voluntary disclosures favourably. We help you prepare disclosures that minimize penalty exposure.

Penalty Mitigation

We negotiate penalties down and prevent future exposure.

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