The Hush Post: Come January 1, 2018 and UAE and many Gulf countries are going to begin a new tax structure similar to the GST. Chartered Accountants (CAs) from India are thus in great demand in the UAE and other Gulf countries. In Dubai alone, over 500 Indian professionals have recently got assignments with demand for more. In UAE and other Gulf countries, the number of Chartered Accountants required is believed to be a dozen times more than this.
The UAE will implement VAT at the rate of 5 per cent from January 1, 2018. Other Gulf countries could also follow suit at the same time or by 1 January 2019 at the latest. Professionals from India are being preferred as India has already gone through the rigours of interpreting and implementing the Goods and Services Tax GST. Their English-Hindi speaking ability is an added advantage, as many residents of the Gulf are comfortable with the language.
A demand for Indian experts comes from their understanding the indirect tax system. The taxes in UAE are much simpler compared with the Indian GST.
Chartered accountants from across India are working in the UAE or are making frequent trips to help their clients understand the law.
The sectors where the services of CAs are required include oil and gas, real estate and retail. Oil and gas is the main industry of the Gulf. Since a host of other industries are related to this sector, VAT will have its applicability at every stage. Governments there are looking for other modes of revenue generation because of the lessening oil revenue.
The VAT in UAE appears to be easier as compared to GST. There are no multiple schedules of rates there.