English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

The place of a Supply of Goods depends on where the Goods are made available, where transport begins or where installation occurs. The Article also contains special rules for Intra-GCC Supplies between Implementing States.

Who should read this?

Suppliers, importers and cross-border trade and logistics teams.

Why does it matter?

Place of Supply determines the taxing jurisdiction. It follows the movement and status of the Goods and parties, not merely the invoice address.

Without transportWith transportIntra-GCC Supplies

Current text

The place of Supply shall be in the Kingdom in the following instances: If the Goods were placed at the disposal of the Customer in the Kingdom, with respect to a Supply made without transport or dispatch. If the Goods were present in the Kingdom at the start of their transport or dispatch, with respect to a Supply made with transport or dispatch, whether the transport or dispatch was done by the Supplier or on the Customer’s behalf. If the installation or assembly of the Goods supplied was carried out in the Kingdom. For Intra-GCC Supplies: The place of Supply of Intra-GCC Supplies shall be in the Kingdom if it was the final destination of the transport or dispatch of Goods, and the Customer was a Taxable Person in it, or if the Supplier was registered or obliged to register for Tax in the it. The place of Supply of Intra-GCC Supplies shall be in the Kingdom if it was the place where the transport or dispatch of Goods starts for a Supply without installation or assembly, the Supplier is registered for Tax purposes in the Kingdom and the Customer is not registered in the Implementing State where the transport or dispatch ends, provided that the value of the Supplies made by the taxable Supplier does not exceed the Mandatory Registration Threshold in that Implementing State during any twelve consecutive month period.

Determine the place of a Supply of Goods

  1. 1

    Classify the Supply as without transport, with transport, or with installation.

  2. 2

    Establish where the Goods were at the event named by the Article.

  3. 3

    For a GCC transaction, check registration and where movement begins and ends.

  4. 4

    Confirm the current NBR treatment of Implementing States before applying the Intra-GCC rules.

Connected provisions

Direct legislative link

Regulations — Article (20)

Place of Intra-GCC Supplies

It details evidence for the start and end of transport in Intra-GCC Supplies.

Open connected Article
Thematic link

Law — Article (78)

Intra-GCC Supplies

Until the GCC electronic services system operates in all Member States, a movement of Goods from Bahrain to another Implementing State is treated as an Export.

Open connected Article
Thematic link

Law — Article (79)

Treatment of non-Implementing States

A Member State whose legislation treats Bahrain as non-Implementing and which has not fully complied with the Agreement is treated as outside GCC territory.

Open connected Article

Official guides and tools

Official guide

VAT Imports and Exports Guide

Place of Supply and cross-border Goods — from the official guidance page

Official guide

VAT General Guide

Place of Supply of Goods

Illustrative example by Madar

Goods dispatched from Bahrain

A Bahrain dispatch point is important, but the result may also depend on where movement ends, customer registration and the current Implementing-State treatment.

Questions to help you apply it

  • Where were the Goods when movement began or they were made available?
  • Does installation form part of the Supply?
  • Are the Implementing-State rules currently applicable?