Bahrain's National Bureau for Revenue (NBR) has released a Public Clarification on Place of supply for Telecommunication services.
This clarification sets out the intention of the NBR to amend the “use and enjoyment” rules under which the place of supply for certain telecommunications services is determined for VAT purposes. The purpose of the amendment is to align the place of supply rules for these services with the International Telecommunications Regulations (Melbourne, 1988), also known as the Melbourne Agreement, to which Bahrain is a party. It is intended for the amended place of supply rules to be effective from 1 February 2021 and those making supplies of telecommunications services should apply them from that date.
As per the amendment, the following are the cases:
|
Nature of Telecommunication service |
Place of Supply |
|
Require the customer to be physically present in a specific location to avail service |
That specific Location |
|
All other services |
Place of Residence of customer |
The place of residence of the customer can be determined by reference to his IP address, Country code of SIM card, Address of the customer on a VAT invoice, details of his bank account, or any other information of commercial nature.
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