Tax advisory for airlines, MRO providers, and airport operators.
International passenger tickets — zero-rated. Domestic leg of international journey — apportionment needed. In-flight sales — place of supply in international airspace. Frequent flyer points — no VAT at accrual.
Maintenance on international aircraft — zero-rated export. AMAC Aerospace in Bahrain — VIP completions. Spare parts imports — customs duty + VAT (recoverable). Engineering services — place of supply rules.
Operating lease — continuous supply of services. Finance lease — may be treated as supply of goods. Cross-border lease — place of supply determines VAT. Cape Town Convention — aircraft registry.
Bahrain's new Airport Terminal positions the Kingdom as a GCC aviation hub. Gulf Air's fleet expansion, AMAC Aerospace's MRO facility, and BAC's cargo operations create a vibrant aviation ecosystem. The Bahrain Airport Free Zone offers customs-free operation for qualifying businesses.
