- Bahrain’s VAT treatment for financial services varies: zero-rated for services exported outside Bahrain, standard-rated (10%) for explicit fees/commissions, and VAT-exempt for services with implicit margins or spreads.
- General insurance and reinsurance services in Bahrain are generally standard-rated (10%), but can be zero-rated if they qualify as exported services or relate to international transport of goods/passengers.
- For reinsurance contracts, the VAT liability is determined solely by the parties to the contract (reinsurer and the company receiving reinsurance services), not by the location or status of the underlying risk or the ultimately insured parties.
Source Orbitax
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