The introduction of Value Added Tax will be a significant change for businesses. VAT has a broad scope and businesses will need to consider the impact of VAT on all their transactions and the potential impact on prices and margins.
With the implementation of VAT in the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) on 1 January 2018, businesses are required to register and to comply with a number of VAT obligations: i.e. charging VAT, issuing tax invoices, filing periodical VAT returns and paying any VAT due to the tax authorities.
While the list of obligations set out above is by no means exhaustive, it is imperative for any business to ensure it is registered for VAT in line with the prescribed timelines of each implementing country.
You should be aware of:
You need to ensure:
From the start you should:
Your systems should allow you:
You need to consider:
This publication has been prepared to provide a general overview of how VAT works and the related operational considerations in order to assist businesses to successfully implement the tax and manage VAT post implementation.
The Egyptian Parliament has discussed and approved the new Value Added Tax (VAT) law on 31 August 2016, and the law has been published in the Official Gazette taking effect on 8 September 2016.
Tax and Legal Services Leader, PwC Middle East
Tel: +971 (0)4 304 3100
Indirect Tax Leader, PwC Middle East
Tel: +971 (0) 4 304 3744