- July 22, 2017
- Posted by: VatMan
- Category: Blog
This is another big step towards implementing VAT in the Kingdom of Saudi Arabia (KSA) on 1 January 2018. KSA is continuing to lead the GCC in the effort towards attaining this implementation goal and it is expected that the UAE will follow suit and issue their law and implementing regulations shortly. At this time the draft has been published for public consultation and the authorities have given a deadline of 19 August 2017 for all views and comments to be submitted; shortly thereafter the final version will be published.
VAT law is always accompanied by implementing regulations which in turn are supported by a number of user guides. The role of these Implementing Regulations is to expand on the areas covered within the VAT Law, thus providing the rules for implementation, and thereby giving taxpayers sufficient information to fulfil their VAT compliance obligations. The user guides further support these laws and regulations to ease the task of understanding and interpreting them.
The current draft of these Implementing Regulations is in Arabic only and covers the following primary areas:
- The scope of taxation
- Registration rules
- VAT grouping
- Date and place of supply rules
- Imports and exports
- Treatment of used goods
- Input tax deductions
- Review and appeals processes
The laws and implementing regulations are expected to be similar across all GGC members. There is now sufficient information for businesses to determine the expected impact of VAT. It is therefore highly recommended that this effort should begin, if it has not already, as time is short. Contact a VAT specialist today to initiate an impact analysis.
“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin
Written by: Azeem Zafar, founder and CEO of VatMan Gulf Limited.
VatMan Gulf is the first choice for businesses requiring VAT specialist services in UAE and the rest of the GCC. We provide the best client experience and deliver value for money. VMG’s mission is to provide a VAT focused service; thus differentiating itself from the majority of firms in the region that take a very general accounting approach. At VatMan Gulf we stay well versed on VAT law developments, providing a comprehensive service that includes, but is not limited to, imparting VAT knowledge, implementing training procedures and ensuring VAT compliance on a continual basis.