A Quarterly Newsletter from the UAE and Oman member firms of the PKF International Ltd. network

VOL 20, Issue 1 January 2018

From the Managing Partner – UAE

Firstly, a very Happy New Year to you all and may it bring peace and prosperity to all of us.

My first experience of VAT was on New Year’s Day in a coffee shop when 50 fils was added to a 15 Dirham cup of coffee for VAT purposes. Clearly, they were absorbing one third of the applicable VAT!! No big deal in this instance, but over multiple transactions? Such places would need to keep a weighty stock of 25 and 50 fils coins. Hopefully by now all those who should have registered have done so and we can all move forward in this new landscape. Judging by some of the newspaper reports, the impact appears to be marginal, which is what the FTA had been saying all along.

As usual we are entering a very busy time of year for us, not just as so many of our clients, both audit and accounting, have a year end of December but also for our valuation consultants, carrying out impairment tests for many non-audit clients, and our VAT consultants who are ensuring their clients stay on track in the early days of VAT implementation and the run up to a first VAT return. This means that our clients will be having a very busy accounting Q1 indeed! This issue features a thought-provoking article on the impact VAT could have on certain businesses and I urge our clients to go through and reflect.

This issue also features a special 2-page report on PKF International’s annual meeting of partners from PKF member firms across the globe which was held in Munich over the 24-27 October 2017. The 2017 Gathering had a record number of attendees and had its focus on the future. We also have our usual update from Oman. Please feel free to write (update@pkfuae.com) if you would like to express an opinion on any matter inside.