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VAT on Digital Services

SaaS, streaming, app stores — how digital services are taxed in Bahrain.

DIGITALMarch 2026 · 7 min read

Digital Service Types

Service B2B (from abroad) B2C (from abroad)
SaaS subscriptions Reverse charge Non-res registration
Streaming (Netflix, Spotify) Reverse charge Non-res registration
App store purchases Reverse charge Platform responsible
Digital advertising Reverse charge N/A (B2B only)
Cloud hosting Reverse charge Non-res registration

📌 Key Point

For B2B purchases, the Bahrain customer must self-assess VAT via the reverse charge mechanism — account for output tax and claim matching input tax on the same return. For B2C, the foreign supplier must register with NBR if making taxable supplies to Bahrain consumers.

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