What do you see as the major challenges for VAT implementation in GCC?

I would categorize challenges in following areas in any enterprise:

• Operational challenges (e.g, Increased competition for goods and services etc.)
• Compliance challenges (e.g, administrative burden, lack of expertise etc.)
• Financial challenges (e.g, affecting revenue, cost, cash flows, budgeting etc.)
• IT challenges (e.g, system customization and system integration etc.)

IN GCC VAT WILL BE CHARGED ON GOODS AS WELL AS SERVICES. THUS THE TAX BURDEN WILL BE FINALLY SHIFTED TO THE END CONSUMER, WHICH WILL INCREASE THE PRICES OF THE PRODUCTS AND SERVICES. THUS THE COMPANIES HAVE TO DEAL WITH THE COST OF PRODUCTION AND PROFIT MARGINS PRECISELY TO AVOID FINANCIAL LOSS DUE TO VAT INTRODUCTION AND LOSS OF CONSUMERS DUE TO INCREASE IN PRICE.

Upgrading the current system or framework to a vat enabled framework and recruiting vat specialists, that too in a country with less tax operations are some of the major challenges according to my opinion.