Are you ready for the change? VAT is being introduced in the GCC countries as of 2018.

Why are we telling you this?

Because businesses should get prepared in time. Although the legislation has not yet been finalized and could change in some aspects, most of the the obligations are already clear. Similar to Tax Authorities enterprises already have their tasks to complete.

What is being changed?

VAT gets introduced with a standard rate of 5% – 
Standard rate will be set at 5%, although member countries may grant discounted rates or even exemptions for certain products, services or sectors

New legislation will enter into effect incorporating certain reliefs – 
According to the draft legislation the rules will be based on the European Union model. There’s a number of reliefs planned for small and medium-sized enterprises.

How do you ensure you have the right know-how in your company?

We can recruit and select accountants, tax advisors, controllers, and other professionals who have been dealing with VAT for years.

What else is advised to do?

  • review business operations so that all affected departments get identified (with special focus on sales, procurement, accounting, and controlling)
  • have the invoicing and accounting systems updated and fine-tuned
  • acquire know-how related to the management of VAT by recruiting professionals and/or training your existing team
  • review your supplier and customer base to make sure each party in the supply chain equally understands itsresponsibilities resulting in all the actions being in line with each other