Frequently Asked Questions on VAT

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How is the place of supply determined for goods?

Place of supply is determined differently based on whether the supply involves goods, services, or certain other categories:

Place of Supply for Goods:

The place of supply for goods will be the Kingdom of Bahrain if any of the following conditions are met:

  • The goods are sold to customers within the Kingdom without the use of transportation or dispatch.

  • The goods are transported or supplied within the Kingdom from the supplier to the customer.

  • The goods are assembled or installed in the Kingdom of Bahrain.

  • The goods are internally supplied by a registered supplier (or a non-registered supplier who is required to register) to a taxable recipient in the Kingdom of Bahrain.

  • The goods are manufactured in the Kingdom and are supplied to a state where VAT is applicable. In this situation, the supplier must be a taxable person, and the customer must be non-taxable in the destination state. The value of the goods must not exceed BHD 37,500, the mandatory threshold, in any twelve consecutive months.

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