Tax advisory for hyperscalers, colocation providers, and managed hosting.
Colocation — standard-rated (place of supply = Bahrain). Managed hosting — standard-rated service. Power pass-through — part of hosting supply. Cooling and facilities — part of composite supply. Cross-border hosting for foreign clients — may be zero-rated export.
Server imports — 5% customs + 10% VAT (input recoverable). Networking equipment — standard import duties. UPS and cooling — capital goods scheme. Construction of data centre — full input recovery (commercial property). Fibre optic cables — standard import duties.
IaaS/PaaS/SaaS — digital services (place of supply rules apply). Cloud sold to Bahrain businesses — standard-rated. Cloud sold to foreign B2B — zero-rated export. Cloud sold to foreign B2C — place of customer. AWS/Azure/GCP costs — reverse charge for Bahrain entities.
We help data centres optimize CapEx recovery and cross-border VAT.
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