In Bahrain the National Bureau for Revenue (NBR) has updated the VAT Real Estate Guideline. In summary, the updated version of the Guideline outlines/clarifies the VAT treatment on the following matters:
- Land reclaimed for the purpose of construction of a new of building will not qualify for the zero rating benefit. Furthermore, land reclamation services and the goods used in such activities will be treated as standard rated supplies;
- Supply of ready-mix concrete in relation to the construction of a new building will be zero rated. The benefit of zero rating is available only where the supplier obtains the certificate evidencing the construction services are related to a new building;
- Mechanism to apportion certain costs on zero rating and standard rating in relation to an extension in a building
- Extension to the list of transactions which will not be treated as exempt real estate supplies.
Source: gov.bh
Contribution by Satish Sarda
