KPMG holds retail and automotive VAT seminar – Compliance of VAT and its impact on businesses discussed

This news has been read 7780 times!

VAT seminar attendees

KUWAIT CITY, Feb 18: KPMG, one of the world’s leading international firms offering professional services in audit, tax and advisory held a Value Added Tax (VAT) Seminar on retail and automotive sector on Tuesday at the KPMG Training Centre at Al Hamra Tower — Kuwait. The seminar presented by highly experienced professionals from the field of Tax, Zubair Patel, Partner and Head of Tax at KPMG in Kuwait and Clare McColl, KPMG Lower Gulf VAT Tax Partner targeted the retail and automotive businesses.

The seminar provided an ideal platform for CEOs, CFOs, COOs, CIOs, tax directors, procurement managers and IT managers who are looking to gain deeper insight on the impact of VAT across the various business functions (ie accounting, VAT filing, ERP systems, policies, procurement and sales cycles) and the steps required to achieve cost-effective compliance. Patel welcomed all the participants and the session commenced with the GCC VAT regulation update. He also gave them a general synopsis on VAT regulations and developments.

VAT is a consumption tax charged on goods and services consumed in Kuwait, however the timeline for the introduction of VAT across the GCC is yet to be determined. “While no GCC state has released its VAT legislation, we understand that these are under preparation,” explained Patel.

VAT is levied on ‘value added’ to the product at each stage of the production or distribution. VAT is also applied to imported goods. Value-added means the difference between the cost of inputs into the product/services and the price at which it is sold to the consumer. It applies to both B2B and B2C transactions. VAT charged is set out in invoices. The VAT rate in the GCC is expected to be 5% and VAT can only be levied by VAT registered businesses.

Meanwhile, McColl tackled the impact of VAT on the retail and automotive sector, including key sector considerations, implementation aspects and mitigation points.

“All businesses should carefully review their processes to understand the impact of VAT and to determine what needs to be done to be fully compliant with the proposed laws since time is short. VAT will impact all businesses in the GCC, either directly or indirectly and, as a transaction-based tax, will impact all aspects of business. Finance, legal, IT, sales, marketing and even human resources teams must understand the impact of VAT on their functioning and determine whether the introduction of VAT will result in additional costs, which could be actual or cash flow or compliance-related,” she explained.

By Michelle Fe Santiago

Arab Times Staff

This news has been read 7780 times!

Related Articles

Back to top button

Advt Blocker Detected

Kindly disable the Ad blocker

Verified by MonsterInsights