Seminar on Value Added Tax held by BDO Bahrain

BDO Bahrain held a seminar on Value Added Tax (VAT) to analyse the implications as well as to share knowledge on VAT which is proposed to be introduced in the GCC states by 2018/19.  The seminar brought together over 200 leading businessmen, who had the opportunity to expand their knowledge and gain international experience from the BDO speaker, Ivor Feerick, Chair of the BDO International VAT Centre of Excellence.

"The introduction of a VAT system in Bahrain and the other GCC States represents a very significant opportunity for businesses in the region to review their operations and internal procedures with a view to ensuring that they maximise the potential to introduce greater efficiencies, and to enable their businesses to cope with the expected scrutiny from the authorities," said Ivor Feerick.

“There are almost 200 countries in the world in which around 170 countries have VAT or a similar form of indirect tax. The signing of VAT and Excise treaties may result in indirect tax process consolidation in the GCC through diversification of government revenues and reduction of subsidies. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE are expected to sign a common VAT Framework Agreement, which will set the VAT principles to be adopted.” said Jawad Habib Jawad, the Chairman of BDO Bahrain.

“The introduction of VAT though may create some challenges in the initial days, it may in turn give additional growth opportunity for the companies by providing them the ability and strength to compete with international players by achieving internal optimization of resources and practices.  This may also create a need to develop or acquire skills and talents required for innovative ideas, new collaboration and ventures and diversified growth through best practices at the same time ensuring compliance with the regulatory environment.” said Ali Jawad, CEO of BDO Bahrain. 

VAT practices are expected to be introduced by the year 2018 in UAE and Kuwait whereas the dates and the road map for implementation in other GCC countries are yet to be announced.