27 October 2016

Business leaders from across Oman gathered together at an ACCA event this week (24 October) to discuss the impending introduction of VAT (Value Added Tax) across the region.

VAT will be implemented in Oman and several other Gulf Cooperation Council (GCC) member countries from 1 January 2018.

Ashok Hariharan, Partner & Head of Tax at KPMG was one of several business leaders in attendance who shared key insights into the introduction of VAT, associated changes resulting from adoption, and the impact it will have on the future of businesses and finance professionals across the region.

Ashok Hariharan, Partner & Head of Tax at KPMG stated: "Whilst VAT is not a tax on business, it is extremely important for businesses to understand and map their supply chain processes and transaction flows to the VAT requirements and ensure that appropriate changes are incorporated in their internal processes including critically, the IT systems. This will be necessary to ensure that they are able to compile and report to the Tax authorities on a regular basis appropriate information including the input VAT credit they should be entitled to. Failure to do so on a timely basis would result in VAT inefficiencies and increased cost to the business."

He also urged businesses to start preparing for VAT implementation now including agreeing budgets, identifying the project management team and doing an initial impact assessment based on available information and international practices. He also mentioned that this is an appropriate time for the ACCA professionals including the large number of Omani members to look at Taxation as a career in Oman.

It is estimated that by implementing VAT, Oman should be able to earn between OMR200 million and OMR300 million additionally every year, which will support in diversifying the economy and provide a new source of government income.

Lindsay Degouve de Nuncques, head of ACCA Middle East states: "The topic of VAT is extremely vital for the region as it presses ahead with implementing fiscal reform. As a result of diversification and introducing a new source of income, the implementation of VAT will have pro-longed economic benefit as it supports sustained growth. It is encouraging to see that the VAT rate has been kept low at the initiation stage which will further support businesses both regionally and in Oman to implement the change that such introduction brings.

"It is both a challenging and exciting time for the region – as such implementation presents a number of opportunities, supports in strengthening the economy and relies on professional accountants such as our qualified members who are going to be vital in supporting the implementation and ongoing management of such fiscal reform."

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About ACCA 
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 188,000 members and 480,000 students in 178 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 100 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com

© Press Release 2016