The implementation of GCC-wide value-added tax could be delayed due to coordination and preparatory work requirements needed to introduce the 5 per cent tariff at the beginning 2018, an IMF official said.
“We are sceptical about whether this (implementation of VAT in the first quarter of next year) can be achieved in the sense that the preparatory and coordination work may not be completed on time,” said Abdelhak Senhadji, deputy director of the fiscal affairs department at the IMF in an interview.
The IMF is supporting Gulf countries on the introduction of VAT through technical assistance. All Arabian Gulf countries have committed to implement the Unified Agreement for Value Added Tax, but nations are moving at different paces of implementation, raising doubt about the possibility of a harmonious introduction of the levy. According to PwC each GCC state establishes its own separate national legislation with detailed compliance requirements and rules outlined in each respective legislation
Source Credit: The National
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