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

International passenger or Goods transport beginning, ending or passing through Bahrain is zero-rated, including a Bahrain leg that forms part of one international transport Supply. Zero rating extends to directly or incidentally related Goods and Services, qualifying Means of Transport and their maintenance, repair, conversion and necessary parts.

Who should read this?

Airlines, shipping, logistics, ports, airports and related suppliers.

Why does it matter?

Activity near a port or airport is not automatically international transport. The Service must be linked to an international journey, qualifying Means of Transport or identified export Goods, with evidence rather than a general logistics description.

Begins, ends or passes BahrainDomestic leg may follow international journeyRelated Services and Means of Transport

Current text

A. Tax shall be imposed at the zero rate on a Supply of transport of passengers or Goods to and from the Kingdom, which commences or ends in the Kingdom or passes through its territory, and on Services and the Supply of Means of Transport associated with such transport as follows: 1. Transport of passengers or Goods, from the Kingdom to a final destination outside the Kingdom, 2. Transport of passengers or Goods from a place outside the Kingdom to a final destination in the Kingdom, 3. Transport Services in the Kingdom, where the transport is part of a Supply of transport Services from the Kingdom to a final destination outside the Kingdom or from a place outside the Kingdom to a final destination in the Kingdom. B. International transportation shall be made through the use of Means of Transport. C. Tax shall be imposed at the zero rate on a Supply of Services and Goods directly or indirectly associated with a Supply of international transportation of passengers and Goods, including the following Supplies: 1. A Supply of Goods and Services for use or consumption on board a Means of Transport,.( 2. Loading and unloading of machinery and equipment used for the transport of Goods, loading of products, unloading, transporting, stowing, packaging, weighing, measuring, monitoring, expertise (including expert Services, commissions closely related to export transactions and equipment intended for export), 3. Rental of containers and equipment for the protection of Goods intended for export, 4. Rental of machinery and equipment that is used to transport Goods intended for export, 5. Security and storage of Goods intended for export, 6. Packaging of Goods that are intended for export, 7. Transactions necessary for export transactions which are carried out by an approved clearance agent of the Customs Department, 8. Visa transactions and related Services and insurance transactions for passengers. D. Tax shall be imposed at the zero rate on a Supply of a Means of Transport, and on a Supply of Goods and Services associated with maintaining, repairing, or converting the Means of Transport, including the Supply of spare parts, consumable materials and other necessary components that are installed or assembled in the Means of Transport.

Is it genuinely international transport?

  1. 1

    Identify origin, final destination and route.

  2. 2

    For a domestic leg, evidence one international Supply.

  3. 3

    Confirm a qualifying Means of Transport.

  4. 4

    Link loading, storage, packaging or clearance to identified export Goods.

  5. 5

    Link parts and maintenance to the qualifying Means.

  6. 6

    Retain contract, transport document and route evidence.

Connected provisions

Direct legislative link

Law — Article (53)

International transport

The Law sets the category and this Article details journeys, related Services and Means.

Open connected Article
Thematic link

Regulations — Article (78)

Local transport

Local transport has its own conditions and licensing rules.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (68)

Official guide

VAT General Guide — Version 1.15

Zero-rated Supplies

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Warehouse to airport

A Bahrain warehouse-to-airport leg under one documented route ending abroad may be tested as part of international transport. A standalone local move with no documented international shipment does not qualify merely because its destination is the airport.

Questions to help you apply it

  • What are origin and final destination?
  • Is the local leg part of one international contract?
  • What is the qualifying Means?
  • What links the Service to the shipment?