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.
The general place-of-Supply rule for Services follows the Bahrain-resident Taxable supplier unless the customer is Taxable and VAT-registered in another Implementing State, in which case it follows the customer.
Service providers and customers in domestic, GCC and cross-border transactions.
The place may follow the supplier or customer depending on status and residence, but the special rules in Articles (17) and (18) must be checked first.
Current text
Apply the general Services rule
- 1
Identify the VAT residence of supplier and customer.
- 2
Confirm the customer's Taxable and registration status.
- 3
First exclude a special rule under Articles (17) or (18).
- 4
Confirm current Implementing-State treatment in NBR guidance.
Connected provisions
Law — Article (17)
Place of Supply of other ServicesArticle (17) contains exceptions that must be tested before relying on the general rule.
Open connected ArticleLaw — Article (78)
Intra-GCC SuppliesDuring the transitional phase, Goods movements to another Implementing State are treated as Exports until the GCC electronic services system operates in all Member States; check the current status before applying Implementing-State rules.
Open connected ArticleLaw — Article (79)
Treatment of non-Implementing StatesA customer in a Member State treated as non-Implementing is treated as resident outside GCC territory.
Open connected ArticleOfficial guides and tools
Service between two businesses
A Bahrain supplier does not alone settle the place of Supply. Customer status and residence and any property, digital, transport or other special rule must also be checked.
Questions to help you apply it
- Where are the supplier and customer resident for VAT?
- Is the customer Taxable and registered in an Implementing State?
- Does a special place rule apply?