Looking for a well paid job? VAT could create 5,000 new accountancy posts across GCC, expert says

There has never been a better time to train as an accountant.

Thousands of finance and accounting jobs will be created in the GCC region with the introduction of VAT.

That is according to Paul Drum, the head of policy at Certified Practising Accountants Australia, who gave a wide-ranging talk at the University of Wollongong in Dubai about the introduction of VAT here on January 1.

Mr Drum said the tax has been implemented by more than 150 countries across the world. “The UAE will apply a VAT rate of 5 per cent on taxable supplies, which is very low in comparison with the average tax rate of 19 per cent globally,” he said.

“However … the law makes provision for zero-rated and tax-exempted goods and services to ensure the impact of VAT on consumers is kept to a minimum.”

VAT will apply to goods such as electronics, smartphones, cars, jewellery, certain beverages, financial and accounting services, legal services, dining out and entertainment. However, certain services and goods, such as nearly 100 food items, including basic health services, transport and public education will be exempt.

Mr Drum explained that the difference between zero-rated and exempt tax is that suppliers of zero-rated goods and services are eligible to reclaim their input VAT, whereas suppliers of exempt goods are unable to do so.

Referring to job openings, Mr Drum said VAT was good news for current finance and accounting students and graduates.