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.
This Article places VAT within three main gateways: Taxable Supplies made by a Taxable Person in Bahrain, receipts to which the Reverse Charge Mechanism applies, and Imports of Goods.
Suppliers, importers and businesses receiving Goods or Services from Non-Resident suppliers.
It is the starting point for deciding whether a transaction is within VAT before considering the rate, an exemption or who must pay.
Current text
Is the transaction within VAT?
- 1
Identify whether the transaction is a Supply or an Import and who makes and receives it.
- 2
Confirm the status of the parties and the place of Supply.
- 3
Where the supplier is Non-Resident, test the Reverse Charge Mechanism rather than assuming no VAT applies.
- 4
Only after scope is established, determine the rate, exemption and Person liable.
Connected provisions
Law — Article (4)
Persons liable to pay VATOnce the transaction is within VAT, Article (4) identifies who must account for it in the Supply, reverse-charge and Import cases.
Open connected ArticleLaw — Article (3)
VAT rateBeing within scope does not automatically mean 10%; zero-rating or exemption may apply under a specific rule.
Open connected ArticleOfficial guides and tools
A Service received from outside Bahrain
Where a Bahrain Taxable Person receives a Service from a Non-Resident supplier, the supplier's location alone does not decide the result. The place of Supply and the Reverse Charge Mechanism must be checked.
Questions to help you apply it
- Is this a Taxable Supply in Bahrain or an Import?
- Is the supplier or customer a Taxable Person?
- Does the Reverse Charge Mechanism apply?