Bahrain issues Public Clarification on VAT treatment of "Warranty Repair Services"

AlinaAlina    11 March 2020
Bahrain issues Public Clarification on VAT treatment of

Bahrain's National Bureau for Revenue (NBR) has issued a Public Clarification on VAT treatment for amounts claimed by a dealer from a manufacturer for repair services undertaken on faulty goods sold by the manufacturer to a dealer for onward supply to his customers where the repair services are covered by a manufacturer’s warranty. Broadly, the clarification covers the following points:

  • Repair services provided by the dealer to the customer during the warranty period ;
  • Reimbursement of repairs costs paid to the dealer from the manufacturer during the warranty period ;
  • Third party warranty repair services ;
  • Extended warranty periods ;
  • Warranty repair services for goods sold prior to VAT implementation date; 
  • Recovery of VAT incurred by dealer established in Bahrain for the provision of warranty repair services.



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