VAT General Guide Update | Manpower Services

The NBR has updated the VAT General Guide, providing further clarity on the VAT treatment of manpower services.

Key points from the update:

▪ The supply of manpower services by an agency is treated as a taxable supply

▪ VAT is chargeable on the total consideration received by the manpower service provider

▪ The taxable value includes:

– Salaries and wages paid to the employees

– Employee-related benefits and allowances

– Any service fee, margin, or commission charged by the agency

▪ The supply is considered a single supply of manpower services, and the consideration should not be split for VAT purposes

▪ The payment of salaries or wages to employees, in itself, does not constitute a supply and remains outside the scope of VAT

📌 The updated VAT General Guide can be accessed on the NBR website:

https://lnkd.in/dfmHJMBV

For any assistance or support regarding Bahrain VAT obligations, reach out to Moore Bahrain at tax@msbahrain.com or call +973 17200144.