Why VAT will be HR’s priority in Bahrain 2019
What is VAT ?
VAT (value added tax) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions.
What is VAT percentage % in Bahrain ?
The VAT is may set at 5% in Bahrain and will apply to almost all goods and services except basic food items, education and healthcare. Every business function will be affected, from IT and human resources through to procurement, finance, and marketing.
VAT Impact on Human Resources (HR) in Bahrain ?
1. Human Resources requires education, training, communication, and specialist skills from various departments in the organization.
2. Human Resources need to analyze if the skills & competencies are available in-house to set up a VAT compliance internally or to explore outsource tax advisory to manage VAT.
3. Tax will play a major part of Payroll and Salaries calculation. Salary heads and configurations need to be restructure as per the new rules.
4. HR Department pressure and effort will increase at least 15%-20% each moth to achieve the new compliance standards for VAT
Any Recommendations for HR regarding VAT in Bahrain?
1. Use any HRMS software to automate recruitment process
2. Implement an HR System to automate the effort of payroll processing and salary configurations.
3. Use any HR software to organize all employee records and documents management in one All-In-One System.
Learn more : https://www.inforiseit.com/hrms.php
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