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

This Article provides special place rules for Non-Resident suppliers, transport hire, hospitality and events, services connected with Goods or immovable property, and passenger or Goods transport.

Who should read this?

Property, hospitality, events, transport and hire businesses and cross-border Service providers.

Why does it matter?

The nature of the Service may override the general rule: immovable property follows its location, while other Services may follow actual performance, transport start or where a vehicle is placed at the customer's disposal.

Special place rulesImmovable propertyTransport and performance

Current text

Notwithstanding the provisions of Article 16 of this Law, the place of Supply of other Services shall be determined according to the following: The place of residence of the taxable Customer where the Supplier has no Place of Residence in the Kingdom. The place where the means of transport are placed at the disposal of the Customer, if the Supply relates to transport rental Services between a taxable Supplier and a non-taxable Customer. In the place of actual performance for the following Supplies: Restaurant, hotel, and food and drink catering services. Cultural, artistic, sporting, educational and entertainment Services. Services related to moveable Goods which are supplied from a taxable Supplier who has a Place of Residence in the Kingdom to a non-taxable Customer in an Implementing State. The place where the real estate is located, if the Supply is related to real estate Services, in accordance with the Regulations. The place where transport of Goods, passengers, and Services relating to such transport commences, if supply relates to transportation services, in accordance with the Regulations.

Choose the special place rule

  1. 1

    Classify the Service precisely.

  2. 2

    Identify the location factor named by the applicable rule.

  3. 3

    For property Services, apply Article (16) of the Regulations.

  4. 4

    For transport, apply Article (19) and retain route evidence.

Connected provisions

Direct legislative link

Regulations — Article (16)

Services connected with immovable property

It defines the direct property connection required for the property rule.

Open connected Article
Direct legislative link

Regulations — Article (19)

Transport of Goods and passengers

It details the place rule for transport and connected Services.

Open connected Article

Official guides and tools

Official guide

VAT General Guide

Special place-of-Supply rules for Services

Illustrative example by Madar

Advice directly connected with a Bahrain property

Where the Service has the direct connection with a specific Bahrain property required by the Regulations, the property's location controls even if a party is outside Bahrain.

Questions to help you apply it

  • What is the precise nature of the Service?
  • Which location factor does the special rule use?
  • Is there a direct property, transport-route or actual-performance link?