Special VAT Committee estabilished in Kuwait

According to the Kuwait Times, Kuwait’s finance ministry has formed a special committee to implement value added tax (VAT), while its experts helped the committee frame the VAT law, PricewaterhouseCoopers (PWC) has said. PWC also noted that the Kuwaiti government is currently moving towards imposing VAT and that it had made a high-profile briefing of its transactions after fully studying VAT’s impact on the national economy and evaluation of its implementation in Kuwait. PWC also said the IMF had urged Kuwait to move forward in terms of implementing VAT, after it was implemented in UAE and Saudi Arabia at the beginning of this year.

In collaboration with PWC, the Investment Companies Union (ICU) invited all concerned parties to a conference titled ‘Problems and Best Practices on Implementing VAT’. The taxation and planning manager at the finance ministry Osama Al-Qassar stressed that as part of a Gulf Cooperation Council (GCC) effort, the ministry has been working for 10 years on implementing VAT, adding that it would not be imposed immediately once the law is passed. “A six to 12-month grace period will be given,” he assured, pointing out that the ministry had met with various economic sectors including banks, investment and oil companies, gold merchants and others to gauge their opinions and suggestions. Qassar stressed that once the law is passed, companies would have to comply to avoid the penalties and fines set by the law.