English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
Transactions between a head office and its branches, or between branches of the same legal Person, are not Taxable Supplies because they occur within one legal Person.
Multi-branch businesses, management accounting, costs and registration teams.
Internal allocation does not create a Supply, but a separately incorporated subsidiary is not a branch merely because the group controls it. Cross-border movements still require specific-rule review.
Current text
Confirm one Person
- 1
Check legal registration of each location.
- 2
Distinguish branch and subsidiary.
- 3
Identify internal entry or external Supply.
- 4
Check cross-border Goods or place rules.
- 5
Do not issue internal Tax Invoice without Supply.
Connected provisions
Official guides and tools
Connected Madar tools
Manama cost allocated to Muharraq branch
Where both locations are branches of the same registered legal Person, employee-cost allocation is internal, not a Supply. A wholly owned subsidiary with separate legal personality is not a branch.
Questions to help you apply it
- Same legal Person?
- Branch or subsidiary?
- Cross-border Goods movement?
- Unneeded invoice issued?