VAT is good for Bahrain businesses: expert

Manama: Introduction of Value Added Tax (VAT) will bring significant opportunity for businesses in Bahrain and other GCC states, according to an expert.

BDO Bahrain held a seminar on Implications of Value Added Tax (VAT) that will be introduced across the GCC states by 2018-19. 

BDO International VAT Centre of Excellence Chair Ivor Feerick presented the seminar, which brought together over 200 leading businessmen.

“The introduction of a VAT system in Bahrain and the other GCC States represents a very significant opportunity for businesses in the region to review their operations and internal procedures,” said Feerick.

BDO Bahrain Chair Jawad Habib Jawad said the signing of VAT and Excise treaties might result in indirect tax process consolidation in the GCC through diversification of government revenues and reduction of subsidies.

“The introduction of VAT may create some challenges in the initial days, but it may in turn give additional growth opportunity for the companies,” BDO Bahrain CEO Ali Jawad.

“This may also create a need to develop or acquire skills and talents required for innovative ideas, new collaboration and ventures and diversified growth through best practices at the same time ensuring compliance with the regulatory environment.”