Important Notice – VAT Rate Increase
In accordance with Law no (33) for the year 2021 amending Decree-Law no (48) for the year 2018 Regarding Value Added Tax (VAT Law), the VAT rate for AWS services increased from 5% to 10% with effect from 1 January 2022.
On 1 July 2018, Amazon Web Services EMEA SARL (“AWS Europe”), our Luxembourg-based AWS entity, started to sell our services. AWS Europe provides all AWS cloud services for your accounts based in these countries and territories in Europe, the Middle East, and Africa. Please read the AWS Europe FAQs for more detail.
AWS Europe is required to charge Value Added Tax (“VAT”) on sales of electronic services to non-taxable persons (B2C) in Bahrain.
If you have accounts located in Bahrain, AWS Europe charges local VAT (or ضریبة القیمة المضافة in Arabic) on all service charges incurred from 1 July 2019, unless you have a valid Tax Registration Number (“TRN”) associated with VAT, such as your VAT Account Number or VAN. All VAT collected from customers in Bahrain will be paid to the National Bureau for Revenue of Bahrain.
If you have a TRN, please visit the Tax Settings page of the AWS Billing Console and confirm or update your details, including your Business Legal Address for all of your account(s). Once you have added a valid TRN on your account(s), no VAT will be applied on your purchases of AWS cloud services from AWS Europe. Please note that you may have to self-assess VAT in your local VAT return.
For additional information on TRN, please click here.
How does AWS determine if your account is located in Bahrain?
At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your VAN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.
If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or the TRN of the payer account. The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page.
Please click here for additional information.
For additional information on the application of VAT in Bahrain, please visit the website of the National Bureau for Revenue of Bahrain.