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 identifies who must pay VAT: the Taxable supplier, a Taxable customer under the Reverse Charge Mechanism, the importer, or any Person who states VAT on an invoice issued in Bahrain.

Who should read this?

Taxable suppliers and customers, importers and anyone issuing an invoice that shows VAT.

Why does it matter?

Liability can fall on someone other than the ordinary supplier. VAT stated on an invoice in error also cannot simply be ignored.

Four liability casesReverse chargeVAT stated on an invoice

Current text

Tax shall be payable by: A Taxable Person who engages in the Supply of Goods and Services in the Kingdom. A taxable Customer who receives Goods or Services in the Kingdom from a Supplier who is a non-resident, in accordance with the Reverse Charge Mechanism by declaring it on the Tax Return. Every Person appointed or recognised as an Importer in accordance with the Unified Customs Law shall be obliged to pay the Tax due on Imports. Every Person who includes an amount of Tax on an invoice issued in the Kingdom. The Regulations shall specify the rules and procedures for the application of this Article.

Who must account for the VAT?

  1. 1

    Identify each party as supplier, Taxable customer, importer or invoice issuer.

  2. 2

    For a domestic Supply, check the supplier's obligation to account for VAT.

  3. 3

    For a Non-Resident supplier, test the reverse charge and VAT Return disclosure.

  4. 4

    Do not state VAT on an invoice before confirming the treatment; correct any error promptly.

Connected provisions

Direct legislative link

Regulations — Article (63)

Rules for payment of VAT

It covers Net Tax, reverse-charge payment and VAT incorrectly stated on an invoice.

Open connected Article
Direct legislative link

Regulations — Article (65)

Payment of VAT on Import

It contains the detailed payment rules for VAT due on Import.

Open connected Article

Official guides and tools

Official guide

VAT General Guide

Liability, reverse charge and Import

Official FAQs

VAT Frequently Asked Questions

Payment and reverse charge

Illustrative example by Madar

VAT stated on an invoice by mistake

If a Person issues an invoice in Bahrain showing VAT on a transaction that is exempt or outside scope, the amount cannot be ignored. The payment obligation and the proper correction documents and Return treatment must be reviewed.

Questions to help you apply it

  • Who does the Law make liable in these facts?
  • Does a Non-Resident supplier trigger reverse-charge liability for the customer?
  • Does an invoice show VAT that must be paid or corrected?