Value Added Tax (VAT) is the integral part of the GDP of any country. The Gulf Cooperation Council (GCC) states have agreed to adopt a unified Value Added Tax (VAT) system with UAE and KSA having implemented VAT since January 2018. The Kingdom of Bahrain is now becoming the third country in the GCC to implement VAT by January 2019.
This will require Businesses in Bahrain to plan for ERP systems to cope with charging, recovering, paying and complying with VAT regimes, impacting all sales and purchase transactions.
Finance and IT departments need to start planning how they will ensure a smooth transition to a VAT enabled system. Setting up VAT in a system is a very important exercise that demands deep specialization and expertise to ensure complete tax compliance.