INTRODUCTION OF VAT IN GULF COUNTRIES
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 9-10-2017<\/p>\n
Yet another tax reform in the world in Gulf Countries is taking place. VAT is being introduced for the first time in Gulf countries as recommended by Gulf Cooperation Council (GCC).
\nGenesis
\nThe GCC group of nations have historically worked together in designing and implementing new public policies as they recognize that such a collaborative approach is best for the region, therefore they framed a VAT agreement for all the member states.
\nGCC VAT AGREEMENT is a framework agreement signed by all six GCC countries:
\n * Broad framework that mainly states provisions for intra GCC trade
\n * Gives countries discretion t<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rvices not exempt from tax. It shall be charged and collected by a taxable person and remitted to the tax authority. A taxable person is a person, persons or entity that carries out an economic activity that requires them to be registered for VAT. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ation of different scenarios for the application of VAT and cost of implementing the same. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" INTRODUCTION OF VAT IN GULF COUNTRIESBy: – Dr. Sanjiv Agarwal Goods and Services Tax – GSTDated:- 9-10-2017 Yet another tax reform in the world in Gulf Countries is taking place. VAT is being introduced for the first time in Gulf countries as recommended by Gulf Cooperation Council (GCC). Genesis The GCC group of nations have … Continue reading “INTRODUCTION OF VAT IN GULF COUNTRIES”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8147","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8147"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8147\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nVAT is levied at each stage in the supply chain and is collected by businesses on behalf of the Government. VAT is ultimately incurred and paid by the end consumer.
\nFrom when?
\nFor UAE and KSA 1st January, 2018 is the go-live date for VAT and other GCC countries have time from January 1st , 2018 to January 1st, 2019 to implement VAT.
\nRegistration for VAT will commence prior to implementation date. In UAE, Registration has commenced w.e.f. 1.10.2017.
\nWhat tax laws?
\nThere will be three Federal <\/p>\n
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\n * Continually track policy development regarding VAT and update prepared scenarios
\n * Understand the key areas of impact in business and plan for adversely affected areas.
\n * Cash flow impact analysis as VAT is paid on an accrual basis
\n * Analyse the capabilities of existing accounting systems to deal with VAT
\n * Contract reengineering and documentation
\n * Analyse and understand transitional issues.
\n * Evaluate the impact of new tax on pricing of any supplies.
\n * Plan for the training of existing staff and the recruitment of skilled resources\/outsourced agencies
\n * Prepare the implementation road map and align relevant teams
\n * IT preparedn<\/p>\n
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