Indirect Tax News Issue 3
19 October 2016
Welcome to the latest edition of BDO’s Indirect Tax News. As mentioned in the introductory note to our last publication, the introduction of a VAT regime in the Gulf States is fast approaching and BDO International is working closely with the Managing Partners of our Member Firms in the United Arab Emirates, Qatar, Bahrain, Oman, and Saudi Arabia to ensure our firm takes a strong leadership role in assisting our clients and contacts in the region.
As part of this initiative, I presented at VATfocussed seminars in each of the Gulf States between 25 September 2016 and 3 October 2016. You may also be aware that Egypt has recently introduced a VAT system, that took effect almost immediately, with a headline VAT rate of 13%, that is significantly higher than the 5% VAT rate expected to be imposed in the Gulf.
Furthermore, a few years later than originally anticipated, a Goods & Services Tax (GST) is also in the cards for India, so there are quite a number of Indirect Tax developments across the globe. In the circumstances, please ensure that you take the necessary advice when doing business in any new geographies.
Here in Ireland, we are expecting that the “Brexit” decision by our near neighbours and closest trading partner – the United Kingdom – will have significant implications for our economy and that this will create risks, as well as opportunities, for us.
As part of BDO Ireland’s strategy to assist our clients, we are acquiring a Customs & International Trade Advisory Practice, as there will likely be a significant increase in the demand for customsrelated advice both in the run up to – and after – the UK's exit from the European Union. This issue will also affect our colleagues in other European Union countries so our customs expertise in Ireland, the UK, and various other countries inside and outside the EU will be well placed to work together to assist our clients as necessary.