English text status

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.

Practical summary

For an unregistered Customer, Telecommunications place follows use and enjoyment: fixed location, SIM country code for mobile, and roaming network country. For a Taxable Customer it follows Place of Residence. Resale legs are tested separately.

Who should read this?

Telecom operators, internet providers, communication platforms and business Customers.

Why does it matter?

Contract or payment place does not override unregistered-Customer use evidence. Roaming follows network country, not SIM code alone.

Unregistered: use and enjoymentTaxable: residenceRoaming: network location

Current text

A. The place of Supply of Telecommunications Services shall be determined in accordance with the following: 1. The place of use and enjoyment of the Service, where the Customer is an unregistered Person for Tax purposes, regardless of the place of the contract or the place of payment of the Consideration. 2. In the Kingdom, if the use or enjoyment of the Service is in the Kingdom, within the limits of such use and enjoyment. 3. In the Place of Residence of the Customer where that Customer is a Taxable Person. B. The place of use of Telecommunications Services shall be determined according to the following principles: 1. In the case of a Supply of Telecommunications Services through fixed locations for receiving fixed or public telephone Services, or internet (Wi-Fi) Services, the place of use and enjoyment of the Services by the Customer shall be that fixed location. 2. If the Services are provided through mobile networks, the place of use and.( enjoyment of the Services shall be determined by the country code of the mobile chip (SIM card) used to receive the service. 3. If the Services relate to international roaming, the place of use and enjoyment of the Services shall be the country where the mobile network used for roaming is located. C. If a Supplier Supplies Telecommunications Services to a Customer for the purpose of re-supplying such Services to another Customer, the place of use and enjoyment of each of these Supplies shall be determined separately.

Customer and use evidence

  1. 1

    Taxable or unregistered Customer?

  2. 2

    Fixed location evidence.

  3. 3

    Mobile SIM country.

  4. 4

    Roaming network country.

  5. 5

    Analyse each resale leg.

  6. 6

    Retain technical and contract evidence.

Connected provisions

Direct legislative link

Law — Article (18)

Telecom and electronic place

This Article provides use indicators.

Open connected Article
Direct legislative link

Regulations — Article (1)

Telecommunications definition

Defines scope.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (17)

Connected Madar tools

Connected Madar tools

VAT Return Centre

Check return deadlines, calculate net VAT from entered amounts, and identify a correction route.

Illustrative example by Madar

Bahrain SIM roaming in France

The SIM code is Bahrain but roaming uses a French network. For roaming, use and enjoyment follows the network country, so SIM code alone does not decide this case.

Questions to help you apply it

  • Taxable Customer?
  • Fixed, mobile or roaming?
  • Network country?
  • Resale?