Value Added Tax (VAT) in GCC Countries
Old news or new chapter?
The ‘VAT in the GCC’ whitepaper addresses some of the arguments and debates surrounding tax reform in the GCC – notably the Value Added Tax (VAT), pushed back into the spotlight when the UAE announced the elimination of fuel subsidies from 1 August 2015.
This issue has once again highlighted the need for long-term fiscal sustainability, moving the GCC away from a reliance on hydrocarbons. VAT is considered to be efficient, cheaper to operate, less open to fraud, and less likely to distort investment decisions by businesses than any form of direct tax.
In this light, the report discusses:
- Balancing the books – Top line or bottom line approach;
- Direct versus indirect tax;
- The economic impact of VAT;
- Corporate Income Tax and broadening the tax base of the GCC;
- A unilateral or multilateral approach to implementation;
- What businesses need to do to prepare