Article (1) — Definitions

In the applicationsof the provisions of this Law, the following words and expressions shall bear the meaning set forth against each of them unless the context otherwise requires: The Kingdom: The territory of the Kingdom of Bahrain including its lands, sub oilthereof,and territorial waters adjacent to its borders, and the seabed, and everything over which it exercises sovereign rights in accordance with the provisions of international law. The Minister: Minister concerned with financial affairs. The Bureau: National Bureau of Revenue established by Decree No. (45) of 2018. Council: Gulf Cooperation Council. TheAgreement: The Unified Agreement for Value Added Tax of the states of the Council ratified by Decree- Law No. 47 for the year 2018. Unified Customs Law: Decree-Law No. (10) For the year 2002 adopting the Unified Customs Law for GCC states. First Point of Entry: First customs point of entry through which Goods enter the Council states territory from abroad in accordance with the Unified Customs Law. Final Destination Point of Entry: Customs point of entry through which Goods enter the final destination State within the Council states. Tax: Value Added Tax imposed on the import and supply of Goods and Services at each stage of production and distribution including on Deemed Supply. Deemed Supply: Transactions which are considered to be a Supply of Goods and Services in accordance with the cases provided in this Law. Supply: Any form of Supply of Goods and Services for Consideration in accordance with the provisions of this Law. Implementing States: Council states that are implementing Tax in accordance with their domestic legislation. Person: Any natural or legal person, whether public or private, or any other form of a partnership. Taxable Person: A Person that conducts an Economic Activity independently for the purpose of generating income, and who is registered or obliged to register for Tax purposes in accordance with the provisions of this Law. Taxable Trader: A Taxable Person in any Implementing State, and whose primary activity is the distribution of gas, oil, water or electricity. Economic Activity: An activity that is conducted in an ongoing and regular manner for the purpose of generating income, including commercial, industrial, agricultural,professional activities or services or any use of tangible or intangible assets, and any other similar activity. Goods: All forms of tangible property (physical assets), including water and all forms of energy, including electricity, gas, lighting, heating, cooling and air conditioning. Import of Goods: The entry of Goods from outside the territory of the Implementing States into the Kingdom, in accordance with the provisions of the Unified Customs Law. Export of Goods: Supply of Goods from the Kingdom to outside the territories of the Implementing States in accordance with the provisions of the Unified Customs Law. Services: Everything which is not a Good, whether local or imported. Taxable Supplies: Supplies on which Tax is imposed, whether at the standard or zero rate, and from which related Input Tax is deducted, in accordance with the provisions of this Law. Input Tax: The Tax borne by a Taxable Person in relation to Goods or Services supplied to him or imported for the purpose of carrying out an Economic Activity. Exempt Supplies: Supplies on which no Tax is imposed on, and from which related Input Tax is not deducted in accordance with the provisions of this Law. Registration Number: A unique Tax identification number issued by the Bureau to a Person who is registered for Tax purposes. Tax Group: Two or more Persons registered for Tax purposes which are treated as a single Taxable Person in accordance with the provisions of this Law. Consideration: All that is received or expected to be received by the taxable Supplier from the Customer or from a third party in for the Supply of Goods or Services, including of Tax. Importer: The Person that the customs documentation show as an importer of the Goods in accordance with the provisions of the Unified Customs Law. Supplier: The Person who supplies Goods or Services. Customer: The Person who receives Goods or Services. Resident Person: Any Person who has a Place of Residence in the Kingdom. Non-Resident Person: Any Person who does not have a Place of Residence in the Kingdom. Place of Residence of a Person: The location of the Place of Business of a Person or the Fixed Establishment. For a natural Person who does not have a Place of Business or a Fixed Establishment, it will be his usual place of residence. If a Person has a Place of Residence in more than one country, the Place of Residence will be considered to be the place most closely connected with the Supply.‎‎‎‎‎‎‎ Place of Business: The place where the business is legally established, or the place of its actual management centre where the key decision relating to the business operations are made if different from the place of establishment.‎‎‎‎‎‎‎ Fixed Establishment: Any fixed location for the business other than the Place of Business, where business is conducted, and is distinguished by the permanent presence of human and technical resources in such a way that enables the Person to supply or receive Goods or Services.‎‎‎‎‎‎‎ Capital Assets: Tangible or intangible assets which constitute part of the assets of the business, and which are assigned for long term use as a business instrument or as a means of investment. Reverse Charge Mechanism: The mechanism whereby the taxable Customer is obliged to pay the Tax due on behalf of the Supplier, and is liable for all the obligations stipulated in this Law. Related persons: Two or more Persons where one has supervisory and directive control over the others in such a way that he hashere he holds an administrative authority enabling him to influence the work of the other Person(s) from a financial, economic or organisational point of view. This includes Persons under the authority of a third Person, who may influence their work from a financial, economical or organisational point of view. Deductible Tax: Input Tax which can be deducted from the Tax due on Supplies for each Tax Period, in accordance with the provisions of this Law. Net Tax: The Tax resulting from subtracting the Deductible Tax in the Kingdom from the Tax due in the Kingdom during the Tax Period and the Net Tax shall be either payable or refundable. Mandatory Registration Threshold: The minimum limit of the value of actual Supplies at which a Taxable Person becomes obliged to register for Tax purposes. Voluntary Registration Threshold: The minimum limit of the value of actual Supplies, at which a Taxable Person may request registration for Tax purposes. Tax Return: The data and information specified for Tax purposes which the Taxable Person must disclose in accordance with a form prepared for such purpose by the Bureau. Tax Period: The time period for which the Net Tax is calculated and the Tax Return submitted. Tax Invoice: Any written or electronic document,which a Taxable Person must issue, in which the details of a Supply are recorded, in accordance with the provisions of this Law. Credit/Debit Tax Note: Any written or electronic document that the Taxable Person is obliged to issue when making any amendments to the Consideration for the Supply, in accordance with the provisions of this Law. Voucher(s): Written or electronic instruments which grants the bearer the right to receive Goods or Services equivalent to the value stated thereon,or the right to receive a discount or reduction on the value of such Goods or Services, excluding postage stamps issued by the Kingdom’s post office. Market Value: The value for which Goods and Services are traded in the open market between two independent parties under competitive conditions, excluding Tax. Government Bodies: Ministries, government authorities, and institutions and public bodies in the Kingdom. Intra-GCC Supplies: Supplies made by a Supplier resident in the Kingdom to a Customer Resident in an Implementing State, or vice versa. Sovereign Supplies: Supplies made by government bodies in their own capacity, whether in exchange for Consideration or not. Tax Representative: A Person licensed by the Bureau to represent a Non-Resident Taxable Person in all that relates to his Tax obligations and rights. Tax Agent: A Person licensed by the Bureau to act on behalf of a Resident Taxable Person in all that relates to his Tax obligations and rights. Regulations: The Executive Regulations of this Law.