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Published: August 12, 2019

Bahrain: VAT Treatment of Travel Agents

The National Bureau of Revenue issued a notice to clarify the VAT treatment of services provided by Travel Agents.

The National Bureau of Revenue issued a notice to clarify the VAT treatment of services provided by Travel Agents. The notice states that goods and services directly or indirectly associated with the supply of international transportation of passengers and goods is zero-rated for VAT purposes. The notice further states that all commissions and fees charged by Travel Agents for ticketing services related to international transportation are zero-rated. In addition, profits realized by a Travel Agent acting as a principal or undisclosed agent on buying or selling international transport services, are not subject to VAT. The effective date of the clarification is 1 August 2019.

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