Bahrain publishes Transport Sector Guide

The National Bureau of Revenue (NBR) in Bahrain has recently issued a VAT Guide on transportation sector. This Guide issued in August 2019 (Version 1.0) provides clarity on international and domestic transportation and related services under Bahrain VAT legislation. Broadly, the Guide covers the following points:

• International transportation of passengers and goods and certain associated services;
• Multi-leg transportation andsub-contracted transport services;
• Supplies associated with the supply of international transportation of passengers and services;
• Methods of determining ‘qualifying means of transport’;
• Services provided by travel agents;
• VAT Treatment of Bundle Travel Packages;
• VAT implication on supply of a means of transport;
• Qualifying means of transport and ‘main purpose’ test;
• Local transportation services and associated VAT Treatment;
• Input Tax deduction for local and international transportation.

To access the full guide, please click here