RIYADH — The introduction of Value Added Tax (VAT) at the beginning of this year was an important landmark for the kingdom of Saudi Arabia. Private businesses and the Government had to make sure that they are fully prepared to meet the requirements of the new VAT regulations.

This means even before the actual introduction of VAT, there was a lot of work that had to be done including assessing the impact of VAT on their business, what changes are required to their accounting and other systems to account for VAT, developing systems to prepare and file monthly reports to the authority. Also, even before the actual introduction of VAT, this generated a significant level of opportunities in the Kingdom.

A number of businesses engaged auditing and consulting firms to assist them with the preparation for VAT and still continue to use them for ongoing assistance and advice. Saudis have played an important role in all this and will continue to do so. The biggest opportunity for Saudis will be the need for Tax Inspectors to administer the VAT system.