GULF VAT UPDATE

The Governments and business across six Gulf states are getting ready for the implementation of Value Added Tax from 1 January 2018. The new consumption tax has been set at 5% across the region with the hope of boosting trade. There however remain a number of hurdles ahead for businesses, including, a lack of local expertise in VAT, no legislation published which makes for an very tight timetable, for competitive industries, companies may not be able to pass on to the final consumer the full VAT charge, meaning a hit to profit margins as well as a number of others…