Tax advisory for freight, warehousing, and distribution operators.
International freight — zero-rated (export of services). Domestic freight — standard-rated at 10%. Disbursements vs recharges — principal vs agent. Bill of lading as documentation evidence.
Goods in customs bonded warehouse — no customs duty or VAT until released. Storage services — standard-rated. Re-export from bond — no import duty payable. Bahrain Logistics Zone — special incentives.
Last-mile delivery — standard-rated. Cross-docking services — standard-rated. Inventory management — standard-rated service. Returns and reverse logistics — credit note adjustments.
The Bahrain Logistics Zone (BLZ) at Khalifa Bin Salman Port offers duty-free storage, light manufacturing, and re-export. Companies operating in BLZ benefit from customs duty suspension, streamlined clearance, and competitive rental rates. VAT still applies to domestic supply of services within BLZ.
