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VAT: potential pressure on the bottom line

VAT: potential pressure on the bottom line

The new value-added tax legislation has serious implications for banks’ profit margins.



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With the new VAT laws in full force, banks will have new costs to reckon with

KPMG recently released the UAE banking perspectives report. In the VAT article, Clare McColl, Partner, Indirect Tax explores the impact of the new VAT laws on banks, what costs might be associate with it, and how banks will be looking to recover these costs.

In this article, you can find out about:

  • exempt and non-exempt costs services for banks
  • to what extent they will be able to recover the costs of VAT resulting from the making of exempt supplies
  • how VAT is apportioned
  • and what the knock-on effect for the consumer might be

Read more. 

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