The global tax landscape is going through a period of fundamental change. Governments are now rethinking how taxes are levied. These changes have been triggered by the rapid spread of technology, new supply chains, debt pressures, and an increased scrutiny of multinational tax practices. More than ever, tax is a top priority for businesses, as sweeping changes, brought in through the Organisation for Economic Cooperation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) recommendations, transform the way they operate.
Corporate tax avoidance often grabs headlines, but major reforms are happening in indirect tax. This year, China will finalize its Value Added Tax (VAT) reform, while India is set to introduce its long-awaited Goods and Services Tax (GST). Bangladesh plans to implement a new VAT in July. In the Middle East, the Gulf Cooperation Council (GCC) countries—Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman—plan to levy VAT by 2018 to boost revenue and diversify their economies.
Talk to your local firm about how Grant Thornton can help your organisation prepare for the shift to indirect taxation.
