UAE companies encounter hiring crunch – VAT implementation nears

Professionals with knowledge in taxes, VAT collection are an issue, according to recruitment experts

Dubai: With the forthcoming implementation of value-added taxes (VAT) in the UAE and over the region, businesses will face an enormous talent crunch following 12 months, according to recruitment professionals.

Businesses in the UAE are gearing up for the assortment of VAT in 2018. It had been the previous forecast that another tax plan will generate a large number of fresh vacancies for financing professionals.

Taxation functions and additional VAT-related positions are seeing very large demand for skilled professionals. Among the positions which have opened up lately consist of VAT managers, VAT and indirect taxes specialists, senior VAT consultants and VAT junior associates and business lead partners. Even more, positions are likely to start next yr, with recruitment likely to intensify as the rollout draws closer.

However, UAE specialists with VAT qualifications and encounter are an issue, prompting companies to look overseas to fill the gap and sweeten their compensation deals.

While a substantial part of the expatriate workforce in the UAE could be acquainted with VAT, many finance experts in the united states started their professions in the Gulf extremely early, so they absence the technical abilities and encounter in a tax environment.

“There happens to be a shortage of skilled skill available,” said Gareth El Mettouri, associate director at Robert Half UAE.

“Many right now senior finance specialists started their professions in a nontax environment following graduation and can, without adequate teaching, find it hard to change over themselves,” added Annalinde Nickisch, the HR consultant at THE IDEA Factory.

She said next season will see a higher demand for applicants who understand how to help organizations changeover right into a new taxes environment.

“The talent requirements for finance and tax professionals will increase as the VAT rollout approaches exponentially,” Nickisch told Gulf Information.

Among the candidates that’ll be hugely popular are anyone who has the knowledge in filling product sales tax returns, in addition to VAT specialists and experts who have the data in VAT sign up the process, administration, fines and penalties and “effect on the operational and the financial functionality” of companies.

“Many companies will have to re-implement, re-configure, and re-customize their existing systems as a lot of installations of well-known accounting software or in-home designed ERP (enterprise resource planning) solutions might not possess the inbuilt capacity to use VAT onto the invoice value,” said Nickisch.

“Therefore will result in a higher demand for technical- practical and techno-useful- consultants who possess understanding and encounter in transitioning business functions into becoming compliant with the brand new VAT framework.”

Heading into the New Season, Robert Half offers predicted that beginning salaries pertaining to tax-related functions will see a growth of 4 % or above, greater than the common of 2.3 % for accounting and finance roles in your community.

Taxes directors in huge companies can get the biggest upsurge in salaries, in a 6.5 %, while tax managers can easily see spend hikes of between 4.3 % and 4.7 %.

“Businesses across almost all sectors will have to begin reviewing their operational financing systems and procedure in planning for the implementation of taxation and VAT more than the next calendar year,” said El Mettouri.

“Firms will have to also an element in the implications of VAT when rolling-out their ERP and SAP (systems applications and items) implementation. “

Although some firms have previously beefed up their recruitment drive, other organizations have opted to supply their existing staff with the required training, to get ready their businesses for the implementation of VAT.

“Many bigger organizations have previously initiated training by engaging external providers to make sure that accounting and finance professionals within the business are knowledgeable on the VAT registration process, VAT administration, fines and penalties linked to VAT filing and its own subsequent effect on the operational and the monetary performance of the business enterprise,” said Nickisch.

Smaller companies, however, haven’t done very much to upgrade their accounting and financing departments.

“While some businesses are proactively evaluating existing features, filling gaps by conducting training and identifying hiring requirements, numerous businesses, specifically in the SME marketplace space, haven’t trained with a whole lot of idea yet,” stated Nickisch.

As to whether UAE-based candidates may still make use of the huge demand, Nickisch said people with “prior working knowledge in a taxable environment” could property good offers.

Source: GULF NEWS