Businesses still making plans for VAT implementation - survey
11% of respondents understood the impact that VAT implementation will have on their business
Almost half of businesses in the GCC have yet to put plans in place for the introduction of VAT next January.
In a survey carried out by Thomson Reuters of individuals who will be involved in VAT implementation, 49% said they were waiting for the framework to be finalised before commencing their VAT impact assessments.
A further 26% have completed a high-level analysis but are unsure of certain key elements which will become clearer once the GCC member states issue the individual country laws.
Just 11% of respondents understood the impact that VAT implementation will have on their business.
In its survey, Thomson Reuters concluded that there are a number of steps companies in the GCC need to undertake to ensure VAT readiness by 2018, including allocating budget for VAT and engaging with a tax advisor as soon as possible.
The report said businesses should understand the VAT compliance, legal obligations and associated financial risks and identify potential IT system gaps for VAT implementation.
Related: Sage: VAT implementation requires training to raise awareness levels