VAT Or Be Lost!
Value Added Tax (VAT) is now the most common form of consumption tax system used around the world. Although the principles of the tax are broadly the same everywhere.
VAT is also used in the developing world. In the Middle East, only six of the 15 economies in Paying Taxes had a value added tax system in 2008. The time needed to comply varies significantly around the world. The majority of countries fall within a range of 25 to 200 hours. However, in seven countries it takes less than 25 hours and in a further seven, over 300 hours. Clearly, the more extensive the tax return, the longer it takes to comply.
Businesses must act now to ensure that they have the right tools and processes to mitigate any potential impacts. Value added tax is a consumption tax levied on the sale of goods and services within (or imported into) a country. Some goods and services (e.g. some financial services and supplies in the real estate sector) will be exempt, which means that value added tax will not be charged when they are sold.
The minimum VAT reporting period is 1 month. Each member state has the discretion to extend this when setting local VAT regulations.