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.
Financial Services specified in the Regulations are exempt, except where Consideration is an explicit fee, commission or commercial discount. For general-insurance reinsurance, determine the treatment from the reinsurance contract and its parties rather than automatically importing the original risk or the location of the original insurer or insured.
Taxable Persons, finance teams and advisers applying this Article to a Bahrain VAT position.
Distinguish implicit financial margins from explicit fees. Analyse reinsurance using its own contract and parties.
Current text
Application steps
- 1
Identify the financial service and payment structure.
- 2
Separate implicit returns from explicit fees and commissions.
- 3
For reinsurance, establish the contracting parties, their locations and the contract terms.
- 4
Do not infer treatment only from the original insured or original risk location.
Connected provisions
Official guides and tools
Reinsurer outside Bahrain
The original risk or policyholder's Bahrain location does not alone decide the reinsurance treatment. Analyse the separate reinsurance contract, its parties, place-of-Supply rules and any export conditions.
Questions to help you apply it
- Is consideration an implicit margin or explicit fee?
- Who are the reinsurance parties?
- Do place-of-supply or export conditions apply?