Automotive, transportation and logistics

VAT impacts different economic sectors in different ways. Automotive dealers representing foreign brands with warranty operations in Bahrain must assess whether any margin (explicit or embedded in the fixed rates) is being charged over and above the costs incurred in providing the warranty services which are claimed from the overseas manufacturer. Vehicle rentals, hire purchase and lease-to-own arrangements should be examined independently as VAT on the full value of the vehicle may be due upfront rather than on each periodic payment. Businesses in the local road transportation sector should distinguish between vehicle rental services and local transportation services as the latter may be eligible for zero rating. International carriers and logistics companies should assess whether they should apply to the NBR to be included on the ‘White List’ for availing the zero rating on import/purchase of aircrafts or vessels.

Our automotive, transportation and logistics VAT specialists will assist you to navigate through the complexities and challenges by providing the right advice with practical solutions to the challenges faced by this sector.