KPMG: VAT implementation will generate thousands of finance jobs in Saudi Arabia
The introduction of the Value Added Tax (VAT) earlier this year was a milestone for the Kingdom of Saudi Arabia. Private companies and the government have had to ensure that they are fully prepared to meet the requirements of the new VAT regulations.
This means that even before the actual introduction of VAT, there was a lot of work to be done, including assessing the impact of VAT on their business, necessary changes to their accounting and other things. systems to account for VAT, development of systems to prepare and submit monthly reports to the authority. Also, even before the actual introduction of VAT, this generated a significant level of opportunities in the Kingdom.
A number of companies have engaged auditing and consulting firms to assist them in VAT preparation and continue to use them for ongoing assistance and advice. The Saudis have played an important role in all of this and will continue to do so. The biggest opportunity for the Saudis will be the need for tax inspectors to administer the VAT system.
The Saudi Organization of Chartered Accountants announced earlier this year the launch of a training program to attract Saudi accredited specialists in the field of VAT, followed by a test to measure professional skills, which will help to increase the number of specialists in this field. According to SOCPA, there are approximately 180 accounting firms licensed by it in the Kingdom.
Ebrahim Baeshen, Head of Tax & Zakat at KPMG, is convinced that in the long run, VAT will benefit everyone and create huge job opportunities for Saudis, in both the public and private sectors. He said employment opportunities would be in the areas of accounting, IT design and implementation, providing tax advice and working as tax inspectors. within GAZT.
Ebrahim recalled that some aspects of VAT legislation can be complex, so businesses should consider obtaining the appropriate advice from professional advisers. Violations of the law can have serious consequences, so care must be taken to comply fully with them. Some businesses may not be equipped to do everything to enter information and submit returns on time, and these businesses may use the services of professional firms or consultants.
Overall, VAT is good for business and good for the Kingdom. This opens up huge opportunities for professionals and others and Saudis should take advantage of it. VAT law can be complex in some situations, so businesses should seek professional advice at an early date to avoid penalties and fines, according to KPMG.