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Voluntary Disclosure

Correct past errors before NBR finds them — reduce penalties and demonstrate good faith.

When to Act

When Is a Voluntary Disclosure Required?

Under Bahrain's VAT law, a taxable person must submit a voluntary disclosure to NBR if they discover an error or omission in a previously filed return that resulted in understated tax or overstated refund.

✅ When You Should File

  • Understated output VAT on sales
  • Overclaimed input VAT on purchases
  • Incorrectly applied exempt/zero-rate treatment
  • Missing reverse charge on imports of services
  • Errors in partial exemption calculations

❌ When You Don't Need To

  • Error is BHD 5,000 or less (can correct in next return)
  • You overpaid VAT (claim adjustment instead)
  • Error was in your favor only (no tax underpaid)
  • NBR has already opened an audit (too late for VD)
Why Do It

Penalty Reduction Benefits

50%

Penalty Reduction

VDs filed before any NBR audit notification typically receive a 50% penalty reduction

Good Faith

Demonstrated Compliance

VDs create a positive compliance record with NBR, reducing future audit risk

No Evasion

Avoids Criminal Risk

Proactive disclosure avoids the risk of tax evasion charges (triple penalties + prosecution)

Process

How to Submit a Voluntary Disclosure

1

Identify & Quantify the Error

Calculate the exact amount of underpaid tax, the affected periods, and the root cause of the error.

2

Prepare Supporting Documentation

Original return, corrected figures, calculation workings, and evidence of the correct treatment.

3

Submit via NBR Portal

File the voluntary disclosure form via nbr.gov.bh with supporting documentation attached.

4

Pay Underpaid Tax + Penalties

Pay the underpaid tax plus any applicable (reduced) penalties. NBR issues a revised assessment.

Need Help With a Disclosure?

We handle the process end-to-end — error quantification, documentation, submission, and NBR negotiation.

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