(MENAFN) Businesses in the UAE need to gear up for the value added tax (VAT) regime and the regulatory framework for the system ought to be prepared now, said Nimish Makvana, chairman of the Institute of Chartered Accountants of India (ICAI) UAE (Dubai) chapter, at a one-day technical seminar held under the theme 'VAT - Where to go and how to get there'.
Speakers at the seminar included Bruce Hamilton, director of indirect tax, Deloitte Middle East; George Campbell, senior manager of indirect tax, Deloitte Middle East; and Murali Murthy, a motivational speaker.
"With the implementation of VAT getting closer, businesses in the UAE and the rest of the GCC have been advised to take action in order to prepare themselves for the new system. For the past few months, there have been statements by UAE government officials and Press reports indicating that a VAT will be imposed in the UAE from January 1, 2018," informed Makvana.
The International Monetary Fund (IMF) has been recommending fiscal consolidation in the GCC through diversification of government revenues and reduction of subsidies. The introduction of taxation in a region that is used to subsidies and lack of levies requires preparation - this was the consensus at the event held on Saturday.
"It is time people are made to understand that public services need to be priced. Options are limited for governments. Either a viable pricing mechanism needs to be implemented to fund public services or governments can resort to big borrowings, which is not sustainable in the long term," said Makvana.
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