English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Electronic Services include automated websites, software, content, subscriptions, advertising, online education and hosting. For non-Taxable Customers place follows use and enjoyment; for Taxable Customers, residence. For a Taxable Customer's residence, the Supplier may rely on invoice address, bank account details, IP address, SIM code and other commercial information; place is fixed at Supply date.

Who should read this?

Software, content, education, advertising, hosting and digital-commerce platforms.

Why does it matter?

One weak or changeable indicator is insufficient. Build a consistent evidence set at Supply date; later subscription use does not reopen the place already determined.

Broad electronic listMultiple location evidencePlace fixed at Supply

Current text

A. Electronic Services shall include, but not be limited to, the following: 1. Services that provide or support an electronic network, including a website or web page on the internet. 2. Digital products, including computer programmes and any changes or updates to software programmes. 3. Services automatically generated by a computer over the internet or an electronic network, as a response to specific data inputs by the receiver. 4. Internet Services software for information that allows the communications component to provide an assisting element, for example components that allow access to news, weather or travel reports, web hosting, online discussion and others. 5. Supply of a website domain, web hosting and remote maintenance of software and equipment. 6. Supply of visual content such as images or texts that are automatically supplied, screensavers, electronic books and other documents and digital files. 7. Supply of music, films, television series, games, magazines, newspapers, or other programmes upon request. 8. Provision of advertising on websites and advertising space on websites and any rights associated with such advertising. 9. Provision of online Educational Services. 10. Supply of computer programmes and updates. B. Where the Customer is not a Taxable Person, the place of Supply of Electronic Services shall be the place where the Services are used and enjoyed. C. The place of Supply of Electronic Services provided to a taxable Customer shall be the Place of Residence of the Customer. For the purposes of determining the Place of Residence of the Customer, the Supplier may refer to the following: 1. The Customer's address as stated on the Tax Invoice or other documents used for billing, 2. Details of the Customer's bank account, 3. The Internet Protocol address of the Customer used to receive Telecommunications Services and Electronic Services, 4. The country code of the SIM card used by a Customer to receive Telecommunications Services and Electronic Services, 5. Other information of a commercial nature. D. The place of use and enjoyment of the Electronic Service shall be determined on the date of Supply and any subsequent changes to the use of the Service received shall not affect the place of Supply.

Digital-Customer evidence

  1. 1

    First test automation under Article 1.

  2. 2

    Taxable Customer or consumer?

  3. 3

    For a Taxable Customer, collect invoice address, bank account details, IP and SIM evidence (Article 18(c)); for a consumer, evidence use and enjoyment.

  4. 4

    Resolve indicator conflict.

  5. 5

    Freeze evidence at Supply date.

  6. 6

    Then determine registration or reverse charge.

Connected provisions

Direct legislative link

Law — Article (18)

Electronic Service place

This Article supplies types and evidence.

Open connected Article
Direct legislative link

Regulations — Article (1)

Electronic Service definition

Automation gates scope.

Open connected Article
Thematic link

Regulations — Article (36)

Non-Resident registration

A Non-Resident liable for Bahrain VAT may need registration.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (18)

Connected Madar tools

Madar tool

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Madar tool

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Bahrain address, foreign card and Bahrain IP

A consumer has Bahrain billing and IP but a foreign-issued card. The platform does not use the card alone; it reconciles indicators and records why Bahrain use was selected at Supply date. The Article 18(c) indicators are set for a Taxable Customer's residence and are used here only as supporting evidence of use.

Questions to help you apply it

  • Automated Service?
  • Taxable or consumer?
  • Consistent indicators?
  • Conflict?
  • Supply date?