Blog: Bahrain Employee Benefits VAT

Benefit VAT Treatment

Benefit	Input VAT	Notes
Staff Training	✅ Recoverable	Business-related training, conferences, CPD courses.
Health Insurance	✅ Recoverable	Mandatory employer health insurance. Standard-rated.
Company Car (personal)	❌ Blocked	Input VAT blocked on vehicles for personal use by employees.
Staff Meals	❌ Blocked	Entertainment and hospitality costs — input VAT non-recoverable.
Staff Housing	⚠️ Partially	Residential rent is zero-rated. Furnished accommodation may be standard-rated.
Relocation Costs	✅ Recoverable	Shipping, travel, visa costs for employee mobilization.

💡 GOSI Impact: Employee benefits may affect GOSI-contributable salary. Housing, transport, and social allowances are included in the contribution base if they are regular and fixed amounts.

Employee Benefits VAT

Benefit VAT Treatment

Benefits Advisory