Company A, resident and registered for VAT in Bahrain, sells cars through sub dealer – Company B, resident and registered in Bahrain. The minimum sale price from Company A to Company B is fixed and actual price is contingent on the price that Company B is able to get from its customer. Company B acts in its own name while selling the goods to the final customer. The goods are periodically moved from Company A’s warehouse to Company B’s warehouse but the title to the goods remains with Company A. When the customer approaches Company B, the goods are taken into stock by Company B and subsequently sold to customer. Company A raises an invoice at the end of each month.
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