60% of GCC businesses ready for VAT
dubai — Deloitte on Tuesday said about 60 per cent of businesses across the Gulf Cooperation Council (GCC) feel very well-informed about the introduction of valueadded tax (VAT) in January 2018.
The global consultant and advisory firm said its latest survey shows businesses have a more positive outlook on VAT. In the previous survey launched in April, only a quarter of respondents felt well-informed.
“It is positive news that the majority of respondents feel very wellinformed regarding reports of the introduction of VAT in the GCC and even more so that the number of respondents feeling this way has increased to 60 per cent from 25.6 per cent since the first survey. This means awareness about VAT in industry is increasing,” said Justin Whitehouse, Deloitte Middle East indirect tax leader.
Deloitte has been conducting regular pulse surveys about how businesses and executives in the GCC are preparing for the implementation of VAT as the tax is expected to go live in the GCC on January 1, 2018.
Compared with Deloitte’s second Indirect Tax Survey conducted in May 2017, the findings of the new survey, launched in July, shows businesses have a more positive outlook on VAT. Today, GCC businesses are better informed and are becoming more aware of the impacts of the indirect tax due to the efforts that have been put in by the governments, especially by Saudi Arabia and the UAE, to communicate with taxpayers over the last several months.
“About 63 per cent of respondents also believe VAT will be introduced very soon in the GCC.
Half of respondents said their business will be ready for VaT and have most likely taken steps to become compliant
Deloitte survey
This statistic shows that respondents now have a greater understanding regarding reports of VAT, as less than half of respondents in the first survey believed VAT would be introduced very soon,” according to the new survey.
Furthermore, now half of the respondents believe they will be ready for VAT by January 1, 2018.
“While half of the respondents indicated their business will be ready for VAT and have most likely taken steps to become compliant, the other half of respondents should start considering the likely impacts VAT will have on them at the soonest, and begin preparations to ensure compliance with the VAT laws,” said Whitehouse.
— business@khaleejtimes.com