GCC Indirect Tax Weekly Digest has been saved
GCC Indirect Tax Weekly Digest
September 2, 2018
KSA GAZT issues violations in Makkah during Hajj season
The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has published a press release stating that it has issued nearly 150 violations during Hajj season to retail local shops for non-compliance with the VAT legislation.
GAZT inspected over 800 sites and issued a range of violations for offenses from not keeping records for tax purposes, not issuing valid tax invoices to issuing invoices by a non-registered entity. This demonstrates that GAZT is taking a proactive approach in monitoring VAT compliance in the KSA.
Bahrain may be next to implement VAT
Following the implementation of VAT in the United Arab Emirates (UAE) and KSA, Bahrain appears to be the next GCC state closest to implementing VAT based on various reports in the press.
The introduction of VAT will be a big challenge for the Bahraini market. From our recent experiences in the KSA and UAE, businesses from a largely non-tax environment will be required to meet significant obligations critical to the operation of the new VAT system. This needs to be completed in a short time and with little margin for error.
As such, we recommend that businesses who have not yet started preparing for VAT implementation begin to do so. Preparation is the key and it takes significant time to get systems, processes and personnel to a point of VAT-readiness.
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.