REVERSE CHARGE MECHANISM IN BAHRAIN Reverse Charge Mechanism Under Bahrain VAT Law: Can a VAT payer opt for Reverse Charge Mechanism in Bahrain on Local supplies? The output VAT liability is triggered as soon as a transaction within the scope of the Bahrain VAT Law takes place. But who is supposed to pay the Output VAT due on such a transaction to the National Bureau for Revenue (NBR) is to be analyzed intimately. Generally, the supplier is suppose to pay output VAT to the NBR, but in certain transactions, reverse charge mechanism in Bahrain would be applicable and therefore the person liable to pay would be the customer. The principle here states that the output VAT that is due on transaction is to be paid by the person liable to the account for the VAT due on a transaction. Let’s understand principle of Reverse Charge Mechanism on local supplies in detail General rule of determining the person liable to pay the Output VAT According to the Bahrain VAT law, the general rule...