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.
A Supply of bare land or a building by sale or rent is exempt subject to the Regulations. Separate Services, rights or components must still be identified and classified.
Taxable Persons, finance teams and advisers applying this Article to a Bahrain VAT position.
Property labels alone are insufficient: identify the land or building and all components of consideration.
Current text
Application steps
- 1
Classify the property under the Regulations.
- 2
Separate associated services and rights.
- 3
Assess exemption's effect on input deduction.
Connected provisions
Official guides and tools
Rent bundled with separate Services
An exempt building lease does not automatically exempt every separately supplied Service or right. Each component and its Consideration must be identified.
Questions to help you apply it
- What exactly is supplied?
- Are there separate services and how do they affect deduction?