Value Added Tax

Several members of our Tax Leadership team have had regional in-house roles where they have been tasked with implementing VAT across several countries. This experience and expertise allows us to assist our clients directly as the region’s tax environment evolves.

Egypt introduced VAT in late 2016, and the GCC Member States agreed a Framework for the implementation of VAT across the GCC in 2016 and are in the process of planning or implementing VAT. Saudi Arabia and the UAE have already published VAT laws with view to implementation in January 2018.

Whilst VAT is considered a relatively easy tax for the tax authorities to introduce, it is not so for businesses. It creates an array of compliance and cash flow challenges for the region’s businesses. Despite the GCC VAT Framework members have discretion in many areas. The treatment of free trade zones, use of the reverse-charge mechanism, payment of VAT and fears of possible double payment are just some of the issues that businesses face.

Usually the first step for our clients is a VAT impact and transaction mapping assessment, so they can fully prepare and plan for the implementation of VAT.

We assist our clients in a number of areas, including assisting their accounting and finance teams to understand the VAT implications and effects on their business and develop and implement necessary procedures. Our team can deliver this support in both English and Arabic.

Technology and systems play a crucial role in solving the issues of VAT, we can work with our clients to review and assess these. We can assist our clients to work with the relevant providers or technology experts to find the most effective solution for them.

We can provide ongoing support, both for implementation, and for the management of VAT compliance whether that be done by in-house resources, or third parties, or a mixture of both.