IDEAS home Printed from https://ideas.repec.org/a/ami/journl/v17y2018i3p406-439.html
   My bibliography  Save this article

The Impacts of Introduction of VAT On the Audit Profession and Economy in The UAE: Auditors’ Perspective

Author

Listed:
  • Aisha Saderuddin
  • Yasser Barghathi

    (Heriot-Watt University Dubai, UAE)

Abstract

Commencing 1st January 2018, Value Added Tax (VAT) was made effective in the UAE. The decision was made in light of the fall in oil prices and with the aim of diversifying the country’s revenue to non-hydrocarbon sectors. This paper examines the impacts of introducing VAT on the audit profession and the economy in the UAE. Unlike previous studies which have viewed this topic from a business or consumer perspective, this paper examines it from an auditor’s perspective. Given that this topic relates to a new policy and there isn’t much literature available on it, this study explores the auditors’ perceptions about the implications of this new policy on both; audit profession and the economy. This paper employs semi-structured interviews with auditors from both Big-Four as well as Non-Big-Four audit firms in order to collect data. This research, apart from being a timely and trending topic, may be useful to academicians, tax specialists, auditors, businesses and regulatory bodies. The findings of the study suggest that auditors are optimistic about VAT implementation in the UAE with respect to the growth in the economy in the long run. However, they have mixed perceptions regarding the audit profession and believe that there is no material impact on it due to VAT implementation.

Suggested Citation

  • Aisha Saderuddin & Yasser Barghathi, 2018. "The Impacts of Introduction of VAT On the Audit Profession and Economy in The UAE: Auditors’ Perspective," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(3), pages 406-439, September.
    • Handle: RePEc:ami:journl:v:17:y:2018:i:3:p:406-439
    as

    Download full text from publisher

    File URL: http://online-cig.ase.ro/RePEc/ami/articles/17_3_5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Howell H. Zee, 2008. "Aspects of Interjurisdictional Sharing of the Value-Added Tax," Public Finance Review, , vol. 36(2), pages 147-168, March.
    2. Richard M. Bird, 2005. "Value-Added Taxes in Developing and Transitional Countries: Lessons and Questions (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0505, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Polyzos, Efstathios, 2022. "Examining the asymmetric impact of macroeconomic policy in the UAE: Evidence from quartile impulse responses and machine learning," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farid Tadros, 2009. "Introducing the Value-Added Tax : Considerations for Implementation," World Bank Publications - Reports 10565, The World Bank Group.
    2. Knud Munk, 2008. "Tax-tariff reform with costs of tax administration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(6), pages 647-667, December.
    3. Boadu Ayeboafo, 2016. "VAT Compliance Challenges in Ghana and How to Address Them," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 2(7), pages 132-139, 07-2016.
    4. M. Govinda Rao & R. Kavita Rao, 2005. "Trends and Issues in Tax Policy and Reform in India," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 2(1), pages 55-122.
    5. Kelly D. Edmiston & Richard M. Bird, 2007. "Taxing Consumption in Jamaica," Public Finance Review, , vol. 35(1), pages 26-56, January.
    6. Astha Sen & Sally Wallace, 2017. "The Revenue Efficiency of India’s Sub-National VAT," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1705, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Alex Cobham (QEH), "undated". "Tax Evasion, Tax Avoidance and Development Finance," QEH Working Papers qehwps129, Queen Elizabeth House, University of Oxford.
    8. Bernardi, Luigi & Gandullia, Luca & Fumagalli, Laura, 2005. "Tax Systems and Tax Reforms in South and East Asia: Overview of Tax Systems and main policy issues," MPRA Paper 1869, University Library of Munich, Germany.
    9. European Commission, 2012. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2012 Report," Taxation Papers 34, Directorate General Taxation and Customs Union, European Commission.
    10. Bernardi, Luigi & Fumagalli, Laura & Gandullia, Luca, 2005. "Tax systems and tax reforms in south and East Asia: Overview of the tax systems and main policy tax issues," MPRA Paper 18214, University Library of Munich, Germany.
    11. James Alm & Asmaa El-Ganainy, 2013. "Value-added taxation and consumption," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(1), pages 105-128, February.
    12. Dasalegn Mosissa Jalata, 2014. "Taxation for Economic Growth: Evidence from Ethiopia," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(7), pages 294-300, July.
    13. Mokhtari, Manouchehr & Ashtari, Mamak, 2012. "Understanding tax reform in the Central Asian Republics," Journal of Asian Economics, Elsevier, vol. 23(2), pages 168-178.
    14. Tapiwa Dalu & Ruvimbo Gillian Dalu & Tatenda Archibald Matibiri & Langton Madzamba, 2016. "Impact of value added tax refunds on revenue collection - a case of Region 1 taxpayers, Zimbabwe," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 247-273.
    15. Muhammad Zafarullah, 2018. "Impact of VAT on UAE Economy," Asian Development Policy Review, Asian Economic and Social Society, vol. 6(1), pages 41-49, March.

    More about this item

    Keywords

    VAT; auditors; UAE; perceptions; economy; qualitative; Big 4 and non-Big 4;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ami:journl:v:17:y:2018:i:3:p:406-439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristina Tartavulea (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.