Facts of the Case:
Company A, resident and registered for VAT in Bahrain has petrol stations across Bahrain. Company A exclusively sells petrol, which is refined by Company B, resident and registered for VAT in Bahrain. To ensure seamless purchase transaction from the customer experience perspective, the two companies enter into an agreement of accepting payment for petrol through a prepaid card (“Card”). The Card is issued by Company B and can be used across any outlet of Company A for purchase of petrol. The Card can be topped up/recharged at any outlet of Company A too.
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