VAT and technology, media and telecommunications (TMT) in the GCC has been saved
VAT and technology, media and telecommunications (TMT) in the GCC
Impacts of VAT on TMT businesses in the Gulf
The technology, media and telecommunications’ (TMT) sector is facing exponential amounts of growth and transformation due to the extensive innovation and fueled competition and it remains an attractive sector for investors and a promising source of high dividend yields in the Gulf Cooperation Council (GCC). So how will Value Added Tax (VAT) implementation in the GCC affect the TMT sector?
The release of the Treaty is a landmark event for the region and marks the true beginning of VAT implementation across the GCC. The Treaty establishes the common principles of the VAT system which is to apply in each GCC State and provides a structure on which domestic VAT legislation will be developed. The publication of the Treaty means we have clarity over the principles which every State will be required to enact and can confirm our understanding of how VAT in the GCC will impact the TMT sector.
The summary document aims to give a greater understanding of the introduction of VAT in the GCC and how VAT will impact the TMT sector and what are the associated challenges for all technology, media and telecommunications’ businesses as per the below:
- Basic concepts of the GCC VAT Treaty
- What will be the VAT liability for supplies in the TMT sector in the GCC?
- What are the business issues that will arise upon the introduction of VAT in the GCC?