What is NBR e-invoicing? A plain guide for Bahrain businesses
Bahrain's National Bureau for Revenue (NBR) is introducing e-invoicing for VAT. Instead of a PDF or a paper receipt that only you and your customer see, every VAT invoice becomes a structured electronic document that also reaches the NBR platform.
An invoice is now data, not just paper
An e-invoice is issued in a structured electronic format through the means the NBR specifies. Scanning a paper invoice or saving a PDF does not count. The invoice must follow the NBR data dictionary and a defined XML format, carry a unique identifier, a digital signature and a QR code.
Who is affected
- All VAT-registered residents of the Kingdom of Bahrain.
- All transactions that need a VAT invoice today, except profit-margin scheme transactions.
- Imports of services under the reverse charge, which need a self-issued e-invoice.
Two models, depending on the customer
Invoices to other businesses (detailed invoices) are cleared: the NBR checks and stamps them before the customer receives them. Invoices to consumers (simplified invoices) are reported: you issue them with your own stamp and QR code and report them to the NBR within 24 hours.
What you need to get ready
- A system that can produce the required data for every sale.
- An e-invoicing device registered with the NBR for each commercial registration.
- A way to validate, sign and send each invoice, and to keep the answers.
- A process for corrections through credit and debit notes.
Where a middleware fits
Most businesses do not want to rebuild their POS or accounting software. A middleware sits between that software and the NBR: it checks the invoice, builds the XML, signs it, creates the QR code, sends it and returns the result.