On July 12, 2016, Gulf News Journal, an online news journal covering business and innovation in the Gulf Region, published an article highlighting how Sovos Compliance understands how implementing a value added tax (VAT) system in the member of states in the Gulf Cooperation Council (GCC) may affect businesses in the region who will now have to achieve compliance with this new tax system. Gulf Coast VAT could become a reality as early as 2018. Taxation is considered an alternative source of income for Gulf states hoping to move their economies and populations away from a dependence on oil and gas. The council announced a target to introduce VAT over the next three years. Healthcare, education, social services and 94 food items will be excluded. In addition to consulting with EY, Sovos was asked to comment on how Gulf Coast VAT implementation because we are closely monitoring this issue and our tax compliance department has already been writing about this topic. More importantly, Sovos offers a comprehensive VAT analysis and reporting solution and assists businesses by providing clear guidance regarding the rules for VAT in jurisdictions throughout the world.
Read the Article About Gulf Coast VAT Implementation Business Implications
To read the full text of the Gulf New Journal article and Matt Walsh’s comments, please click here. We also encourage you to sign up for our blog subscription email to stay current on all developments in this region and for VAT updates.
