KPMG holds VAT technical training event – Let’s talk VAT

Expert provides insights on changing tax landscape in GCC

KUWAIT CITY, Nov 23: KPMG Safi Al Mutawa & Partners successfully conducted a technical training on Value Added Taxes (VAT) readiness and implication. The training was held on Nov 15, 2016 at the Four Seasons Hotel — Kuwait.

The training event, Let’s talk VAT was attended by approx. 100 participants from a diverse group of industries and facets which was presented by our highly experienced professionals from the field of Tax and IT, Zubair Patel, Partner and Head of Tax, Fahim Bashir, Tax Director, Ms Aswathy Chembolly, Senior VAT manager and Vishnu Sri Pillai, IT Partner (KPMG India).

At the beginning of the session, Zubair, provided a general synopsis on VAT regulations and developments. Zubair also provided insights on the changing tax landscape in GCC and rationale behind the introduction of VAT and the reduction in the government subsidies following issuance of the IMF Report during 2016.

Following Zubair’s session, Fahim highlighted basic concepts related to VAT and its impact on businesses during the session. Furthermore, Fahim discussed the treatment of various sectors as taxable, zero rated and exempt supplies as per the KSA and UAE VAT Law.

Aswathy shed light on the fundamental VAT concepts whilst having interactive Q&A sessions between intervals to discuss the impact across various lines of business. Key topics discussed during the training were place and time of supply, input tax credit/ recovery, Free Trade Zones implications, capital asset scheme and transitional provisions.

During the second half of the training, VAT compliance requirements as described in KSA and UAE Law was reviewed in detail as well as the penalties for noncompliance with the law and VAT audit process.

KPMG India’s IT Partner, Vishnu pointed out the IT implications and key IT requirements for businesses transitioning to be VAT ready. Furthermore, Vishnu addressed the changing IT landscape in the GCC and how businesses can efficiently transition to become VAT ready.

The training was attended by CEOs, CFOs, COOs, tax directors, procurement managers and IT managers who were looking to gain deeper insight on the impact of VAT across the various business functions (i.e. accounting, VAT filing, ERP systems, policies, procurement and sales cycles) and the steps required to achieve cost-effective compliance.

The session also highlighted various challenges that businesses in Kuwait and across the GCC countries would face with respect to VAT implementation process and how VAT can possibly have a neutral impact if managed effectively.

The discussion concluded with insights on how KPMG has been actively involved in assisting clients in Kuwait to be VAT ready.