As the Gulf Cooperation Council (GCC) prepares for the adoption of the value added tax (VAT) system in January 2018, a survey conducted by global consultants EY announced only 11% of the region’s company is ready for the move.
According to the survey 50% of companies have not started any preparations for 5% added tax, 29% of the companies surveyed said that they have studied some of the new VAT provisions, leaving only 11% of the surveyed stating that they have in fact evaluated the impact of the change, and the amendments needed in their financial, operational and information technology processes.
The data shown matches a warning issued by Fitch Ratings in February, where it stated that the plan to introduce VAT in the GCC region could create operational risks for companies, increasing pressure on profits as well as cash flow in some industries, reported Arabian Business.
By Decypha News Editorial Team
