One of the biggest retailers in the United Arab Emirates began its preparations for the introduction of VAT 12 months ago, its chief executive has said.
Speaking at a GCC VAT forum that took place in Dubai last Monday, Landmark Group’s CEO and chief financial officer, Rajesh Garg, said: “We started preparations from September 2016".
“Businesses should take (VAT) seriously," Garg said. "Digitising and finding the right technology were the main challenges,” he added.
A new report by Oracle and Harvard Business Review (HBR) that surveyed 450 senior GCC company executives found that 73 percent of businesses considered VAT implementations an opportunity to upgrade their digital systems.
Jairaj Jaisinghani, the chief financial officer of Jumbo Electronics, told attendees at the forum the legal and technology preparations were the most demanding. He said his company had to recruit VAT experts and train all of its staff on how to deal with the new tax.
“Avoid [taking] VAT lightly. Even the cashiers sitting at the counters need to know that there will be VAT,” Jaisinghani said. He added that one of the main challenges he had to contend with was that both “internally and externally, people did not believe it (VAT) will happen in January 2018”.
The six members of the GCC, the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait and Oman, had agreed in 2016 to introduce VAT as a means to diversify government revenue sources and reduce reliance on crude oil exports.
Each country is expected to introduce its own VAT law and regulatory framework. The UAE President, Sheikh Khalifa bin Zayed Al Nahyan, ratified the UAE’s VAT law late last month.
The director-general of the UAE’s Federal Tax Authority, Khalid Al Bustani, had said in a press conference earlier last month that the UAE and Saudi Arabia will be the first GCC countries to implement the tax on January 1, while the rest of the GCC countries will follow in 2018.
Cathy Safaya, Dubai Opera’s director of finance, also said at the GCC VAT forum that only companies that have not prepared well for the new tax will feel an impact.
Jaisinghani said his company had appointed VAT experts and invited others to talk to the company’s employees about the VAT.
“Consultants have helped alot,” Garg said.
For Zawya’s special coverage on VAT in the GCC, click here.
© Zawya 2017
Speaking at a GCC VAT forum that took place in Dubai last Monday, Landmark Group’s CEO and chief financial officer, Rajesh Garg, said: “We started preparations from September 2016".
“Businesses should take (VAT) seriously," Garg said. "Digitising and finding the right technology were the main challenges,” he added.
A new report by Oracle and Harvard Business Review (HBR) that surveyed 450 senior GCC company executives found that 73 percent of businesses considered VAT implementations an opportunity to upgrade their digital systems.
Jairaj Jaisinghani, the chief financial officer of Jumbo Electronics, told attendees at the forum the legal and technology preparations were the most demanding. He said his company had to recruit VAT experts and train all of its staff on how to deal with the new tax.
“Avoid [taking] VAT lightly. Even the cashiers sitting at the counters need to know that there will be VAT,” Jaisinghani said. He added that one of the main challenges he had to contend with was that both “internally and externally, people did not believe it (VAT) will happen in January 2018”.
The six members of the GCC, the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait and Oman, had agreed in 2016 to introduce VAT as a means to diversify government revenue sources and reduce reliance on crude oil exports.
Each country is expected to introduce its own VAT law and regulatory framework. The UAE President, Sheikh Khalifa bin Zayed Al Nahyan, ratified the UAE’s VAT law late last month.
The director-general of the UAE’s Federal Tax Authority, Khalid Al Bustani, had said in a press conference earlier last month that the UAE and Saudi Arabia will be the first GCC countries to implement the tax on January 1, while the rest of the GCC countries will follow in 2018.
Cathy Safaya, Dubai Opera’s director of finance, also said at the GCC VAT forum that only companies that have not prepared well for the new tax will feel an impact.
Jaisinghani said his company had appointed VAT experts and invited others to talk to the company’s employees about the VAT.
“Consultants have helped alot,” Garg said.
For Zawya’s special coverage on VAT in the GCC, click here.
© Zawya 2017
