Bring on the VAT – we’re ready, say UAE businesses
Businesses need to begin preparations to ensure compliance with the VAT laws
Deloitte on Tuesday said about 60 per cent of businesses across the Gulf Cooperation Council (GCC) feel very well informed about the introduction of value-added tax (VAT) in January 2018.
The global consultant said its latest survey shows businesses have a more positive outlook on VAT. In the previous survey launched in April, only a quarter of respondents felt well informed.
As of July 2017, half of the respondents believe they will be ready for VAT by January 1, 2018.
“While half of the respondents indicated their business will be ready for VAT and have most likely taken steps to become compliant, the other half of respondents should start considering the likely impact VAT will have on them at the soonest, and begin preparations to ensure compliance with the VAT laws,” said Justin Whitehouse, Deloitte Middle East Indirect Tax leader..
Deloitte has been conducting regular pulse surveys about how businesses and executives in the Gulf Cooperation Council (GCC) are preparing for the implementation of VAT, as the tax is expected to ‘go-live’ in the GCC on January 1, 2018.
“It is positive news that the majority of respondents feel very well informed regarding reports of the introduction of VAT in the GCC and even more so that the number of respondents feeling this way has increased to 60 per cent from 25.6 per cent since the first survey. This means awareness about VAT in industry is increasing,” said Whitehouse.
Compared with Deloitte’s second Indirect Tax Survey conducted in May 2017, the findings of the new survey, launched in July, shows businesses have a more positive outlook on VAT. Today, GCC businesses are better informed and are becoming more aware of the impacts of the indirect tax due to the efforts that have been put in by the governments especially by the Saudi Arabia and the UAE to communicate with taxpayers over the last several months.
“About 63 per cent of respondents also believe VAT will be introduced very soon across the GCC. This statistic shows that respondents now have a greater understanding regarding reports of VAT, as less than half of respondents in the first survey believed VAT would be introduced very soon,” according to the latest survey.
“About 63 per cent of respondents also believe VAT will be introduced very soon in the GCC. This statistic shows that respondents now have a greater understanding regarding reports of VAT, as less than half of respondents
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