Nearly 60% of GCC businesses feel very well informed about the introduction of VAT in January 2018 has been saved
Nearly 60% of GCC businesses feel very well informed about the introduction of VAT in January 2018
11 July, 2017 – Deloitte has been conducting regular pulse surveys about how businesses and executives in the Gulf Cooperation Council (GCC) are preparing for the implementation of Value Added Tax (VAT), as the tax is expected to ‘go-live’ in the GCC on 1 January 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.
Compared to previous statistics generated from the first Deloitte Indirect Tax Client Survey, GCC businesses have shown a turnaround in their views towards VAT. They are better informed and are becoming more aware of the impacts of the indirect tax.
Nearly 60% of respondents feel very well informed about the introduction of VAT, whereas in the previous survey launched in April, only a quarter of respondents felt well informed. This represents an increase of 33.1% of respondents who now feel very well informed, indicating a heightened awareness of VAT among executives and businesses in the GCC. This increase is likely to be the result of the efforts that have been put in by the governments especially by the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) to communicate with taxpayers over the last several months.
63% of respondents also believe VAT will be introduced very soon in the GCC. 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.
“It is positive news that the majority of respondents feel very well informed 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% from 25.6% since the first survey. This means awareness about VAT in industry is increasing,” said Justin Whitehouse, Deloitte Middle East Indirect Tax leader.
Furthermore, now half of the respondents believe they will be ready for VAT by 1 January 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.
To participate in subsequent pulse surveys, go to: https://dexsurvey.deloitte.com?XID=83022
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.
Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 220,000 professionals are committed to making an impact that matters.
About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926.
Deloitte provides audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with more than 3,300 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has also received numerous awards in the last few years which include best employer in the Middle East, best consulting firm, the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.