30 November 2016
A framework agreement for the introduction of value-added tax is expected to be signed by the Gulf Cooperation Council (GCC) states shortly, according to a report in the Times of Oman newspaper. Read more here.
The six-member states of the GCC had agreed last February to introduce a new 5 percent VAT by 2018, in an attempt to combat reduced revenue as a result of the low oil price.
The UAE is expected to lead the way first, followed by Saudi Arabia, according to analysts. Read more here.
The GCC governments are yet to announce the details of the new law, but officials spoke about a list of around 100 exempted items that would include essential food products along with health and education services. Read more here.
Analysts and businessmen have repeatedly urged the GCC governments to release more details on the new tax and said businesses will need at least one full year to prepare for the new tax.
“What businesses would want is to understand what is coming and when it will be implemented and what will be the features, extra. So the more clarity, the more certainty the better they would be able to assess,” Jeanine Daou, the Middle East Region VAT and Indirect Tax Leader for PWC’s consultancy firm told Zawya.
“The better and the simpler the system and the easier to comply with, the better. A VAT at 5 percent will not have an impact of a VAT at 20 percent or more that we see in other places in the world and it is still lower than other rates implemented in the region,” Daou added.
For detailed information and analysis on the introduction of VAT click here to read Zawya's Special Coverage.
© Express 2016
A framework agreement for the introduction of value-added tax is expected to be signed by the Gulf Cooperation Council (GCC) states shortly, according to a report in the Times of Oman newspaper. Read more here.
The six-member states of the GCC had agreed last February to introduce a new 5 percent VAT by 2018, in an attempt to combat reduced revenue as a result of the low oil price.
The UAE is expected to lead the way first, followed by Saudi Arabia, according to analysts. Read more here.
The GCC governments are yet to announce the details of the new law, but officials spoke about a list of around 100 exempted items that would include essential food products along with health and education services. Read more here.
Analysts and businessmen have repeatedly urged the GCC governments to release more details on the new tax and said businesses will need at least one full year to prepare for the new tax.
“What businesses would want is to understand what is coming and when it will be implemented and what will be the features, extra. So the more clarity, the more certainty the better they would be able to assess,” Jeanine Daou, the Middle East Region VAT and Indirect Tax Leader for PWC’s consultancy firm told Zawya.
“The better and the simpler the system and the easier to comply with, the better. A VAT at 5 percent will not have an impact of a VAT at 20 percent or more that we see in other places in the world and it is still lower than other rates implemented in the region,” Daou added.
For detailed information and analysis on the introduction of VAT click here to read Zawya's Special Coverage.
© Express 2016
