Frequently Asked Questions on VAT

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How is the place of supply determined for services?

Place of Supply for Services:

The place of supply will be the Kingdom if the supplier is a taxable resident of the Kingdom, unless the recipient is a taxable person from another VAT-implementing state. In that case, the recipient’s location will be the place of supply for the service.

Place of Supply for Services That Fall into Other Categories:

  • If the supplier does not reside in the Kingdom of Bahrain, the place of supply will be the taxable customer’s country of origin.

  • For a supply of transportation services, if a taxable supplier leases a vehicle to a non-taxable customer, the place of supply will be the location where the service is made available for the customer.

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