--- title: Bahrain VAT Zero-Rated Supplies: Frequently Asked Questions url: https://www.erpbahrain.com/compliance/vat-zero-rated-supplies/faq/ updated: 2026-10-09 publisher: BAHRAIN ERP (part of Shyphan AI Solutions Pvt Ltd) --- Compliance # Bahrain VAT Zero-Rated Supplies: Frequently Asked Questions Answers to common questions about VAT zero-rated supplies in an ERP context. Quick answer VAT Zero-Rated Supplies requirements in Bahrain are set by the National Bureau for Revenue (NBR). In an ERP, this affects: zero-rated item flags, customer category, export or qualifying evidence, tax code mapping. - Zero rating is applied only where your adviser confirms - Evidence is kept with the transaction - Reports separate zero-rated from exempt This page is part of our Bahrain compliance series. Related topics: [VAT Registration](https://www.erpbahrain.com/compliance/vat-registration/), [VAT Invoice Fields](https://www.erpbahrain.com/compliance/vat-invoice-fields/). Apply them in [Zoho Books](https://www.erpbahrain.com/zoho/zoho-books/), [Odoo Accounting](https://www.erpbahrain.com/odoo/odoo-accounting/) or [ERPNext Accounting](https://www.erpbahrain.com/erpnext/erpnext-accounting/), and see [all compliance topics](https://www.erpbahrain.com/compliance/). Records ## Records Involved VAT Zero-Rated Supplies affects how records are captured, approved and reported in your ERP. The rules come from the National Bureau for Revenue (NBR); this page only describes how a system can be set up to support them. - Zero-rated item flags - Customer category - Export or qualifying evidence - Tax code mapping Controls ## Controls and Evidence **Controls and evidence** | Control | Evidence to keep | | Zero rating is applied only where your adviser confirms | Approval record, report or screenshot with date | | Evidence is kept with the transaction | Approval record, report or screenshot with date | | Reports separate zero-rated from exempt | Approval record, report or screenshot with date | | Rule changes are approved | Approval record, report or screenshot with date | Configuration ## Settings to Review Settings to review during implementation. Exact names differ by platform. - Zero-rated tax code - Evidence attachment fields - Report grouping - Change approval Setup ## How to Set Up VAT Zero-Rated Supplies in an ERP **Setup steps** | Step | What to do | | 1. Confirm | Confirm the current requirement for VAT zero-rated supplies with the National Bureau for Revenue (NBR) | | 2. Map records | Map zero-rated item flags, customer category, export or qualifying evidence to ERP fields | | 3. Configure | Set up zero-rated tax code, evidence attachment fields, report grouping | | 4. Add controls | Enable the controls above, with approvals and logging | | 5. Test | Run the scenarios below with sample data and compare with expected results | | 6. Document | Record settings, owners and the review rhythm, then train users | Testing ## Test Scenarios Before Go-Live **Test scenarios** | Scenario to test | Expected result | | Try to break this control: zero rating is applied only where your adviser confirms | The system blocks or flags it, and the attempt is logged | | Try to break this control: evidence is kept with the transaction | The system blocks or flags it, and the attempt is logged | | Try to break this control: reports separate zero-rated from exempt | The system blocks or flags it, and the attempt is logged | | Try to break this control: rule changes are approved | The system blocks or flags it, and the attempt is logged | | Run the process end to end with sample data | Reports reconcile with the transactions entered | Ongoing ## Review Rhythm **Suggested review rhythm** | When | Review | | Before go-live | Confirm requirements with the authority or your adviser; test with sample documents | | Monthly | Reconcile reports to filings or statements; review exceptions | | Quarterly | Review user access, approvals and changes made to settings | | After a rule change | Update configuration, retest and record the change | FAQ ## Compliance Questions - Where do these requirements come from? From the National Bureau for Revenue (NBR). We confirm the current requirement before configuring your system. - Who sets the rules for VAT zero-rated supplies? The rules come from the National Bureau for Revenue (NBR). Always check current official sources. - What records are involved in VAT zero-rated supplies? Zero-rated item flags, Customer category, Export or qualifying evidence, Tax code mapping. - Can BAHRAIN ERP configure our system once rules are confirmed? Yes. We configure and test the system against the requirements your adviser confirms. - Which records does VAT zero-rated supplies involve in an ERP? Zero-rated item flags; Customer category; Export or qualifying evidence; Tax code mapping. - Which ERP controls support VAT zero-rated supplies? Zero rating is applied only where your adviser confirms; Evidence is kept with the transaction; Reports separate zero-rated from exempt; Rule changes are approved. - Which ERP settings should be reviewed for VAT zero-rated supplies? Zero-rated tax code; Evidence attachment fields; Report grouping; Change approval. Have More Questions? Book A Free Consultation [ Talk to Us ](https://www.erpbahrain.com/contact.html) Or, Email us at contact@erpbahrain.com ## Related Pages - [VAT Zero-Rated Supplies guide](https://www.erpbahrain.com/compliance/vat-zero-rated-supplies/) - [All compliance topics](https://www.erpbahrain.com/compliance/) - [Bahrain VAT Zero-Rated Supplies: ERP Control Checklist](https://www.erpbahrain.com/compliance/vat-zero-rated-supplies/erp-controls/) - [Bahrain VAT Zero-Rated Supplies: System Configuration Requirements](https://www.erpbahrain.com/compliance/vat-zero-rated-supplies/system-configuration/)