The UAE and Saudi Arabia were the first two countries to implement VAT beginning January 1, 2018, followed by Bahrain, which deployed the new system at the start of this year. Overall, the implementation has reportedly been smooth, but challenges have naturally emerged, with some concerns still being addressed until today. For instance, some businesses are yet to fully understand the proper application of VAT on goods and services, resulting in several compliance errors. Instead of the immediate imposition of penalties due to these mistakes, tax authorities have instead focused on raising the awareness about proper adherence to the provisions of the VAT law. Nonetheless, businesses mandated to register for VAT but are still facing issues today need to be proactive to eventually increase their compliance level.
Read more at: https://www.arabianbusiness.com/banking-finance/439635-vat-implementation-in-ksa-uae-firsthand-impression
Source: Arabian Business
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