Firms not doing the maths
Almost half the CFOs polled in a survey said their firms have “minimal understanding” of the impact of VAT. To diversify revenues and lower dependence on energy-related income, GCC states will incorporate valueadded tax ( VAT) at a rate of 5 per cent in 2018. Of the CFOs polled for the report ‘Global CFO Signals - Still reluctant to spend’, 93 per cent expect to see some level of impact on their business but almost half said their business has a “minimal understanding” of the range of impacts. And 81 per cent are yet to incorporate VAT considerations into their strategic planning.