• Indirect Tax News Issue 4 December 2016

Indirect Tax News Issue 4

12 December 2016

Whereas one is generally discouraged from engaging in loose discussions about politics, I think 2016 can clearly be identified as a year during which politics and indirect tax became inextricably linked because of the now infamous "Brexit" vote in the UK a few months back. Though it is likely to take quite a number of years to unravel all of the consequences that will arise from this decision, it is relatively clear at this stage that this vote is likely to result in significant additional considerations from both a VAT and a Customs Duty perspective. This is so, particularly for trading between the UK and the other 27 Members of the European Union, as soon as the UK formally exits from the "Union". 2016 was also the year during which details of the proposed implementation of VAT systems in the six GCC Gulf States of UAE, Kuwait, Oman, Qatar, Bahrain and Saudi Arabia started to emerge. India also announced details of a new Indirect Tax system to be rolled out. Not to be outdone, a number of other countries also provided details of new indirect taxes to be introduced on certain digital services. So, as we head toward the year end, I and my indirect tax colleagues can relax in the knowledge that there will be plenty of opportunities to provide assistance to our clients in almost 150 countries worldwide as we continue to grow our international network. Hopefully, the fact that we are available to assist and provide expert advice on indirect tax issues as they arise is also a source of comfort to our many clients. Many thanks to all of our clients for their continued support and engagement with BDO International Offices during 2016