New level of clarity on US trade tariffs
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Khaleej Times
an hour ago
- Khaleej Times
UAE's e-invoicing revolution: The Peppol promise in tax filing
The UAE is gearing up for a digital transformation in tax compliance with the mandatory launch of e-invoicing starting July 1, 2026. This shift isn't just about reducing paperwork — it's about redefining how businesses issue, track, and report transactions across sectors. But what exactly does e-invoicing mean in practice? And what can the UAE learn from early movers like Saudi Arabia, India, and global frameworks like Peppol? Contrary to popular belief, e-invoicing is not about emailing a PDF. Think of an e- invoice not just as a document, but as a conversation between five parties — two familiar, and three newly invited guests: 1. The seller – That's you, the business issuing the invoice. 2. The buyer – Your customer who receives the invoice. 3. The seller's ASP (Accredited Service Provider) – An FTA-approved tech platform that formats and securely sends your invoice to the right channels. 4. The buyer's ASP – Another approved platform that receives and processes the invoice on the buyer's side, ensuring compatibility and security. 5. The Federal Tax Authority (FTA) – The ultimate overseer. It validates the invoice in real time for compliance, accuracy, and auditability. So, every e-invoice is more than a digital receipt — it's a structured dialogue routed through secure intermediaries, keeping everyone accountable and in sync. So, every time an e-invoice is created, it's not just a one-way message from seller to buyer. It's a five-way interaction that promotes trust, automation, and audit- readiness. As in most economies, even the FTA's rollout will occur in two phases: • Phase 1 (July 2026): Targets large businesses issuing B2B and B2G invoices. • Phase 2 (2027 onward): Extends to SMEs and B2C entities with invoice clearance and real-time reporting. Saudi Arabia: A regional success story Saudi Arabia's Zatca introduced e-invoicing in 2021 with a phased approach — first requiring businesses to generate e-invoices, and later mandating real-time integration with tax systems. The result? Millions saved in VAT leakage, quicker audits, and improved compliance. Businesses became more transparent and tax administration more efficient. For the UAE, Saudi Arabia's approach offers a ready blueprint for scale and execution — backed by data and success metrics. India's experience: Scale, simplicity, and structure India launched its e-invoicing regime under the GST framework in 2020. Starting with large taxpayers and expanding downward, every invoice passes through a centralised Invoice Registration Portal (IRP) and is validated in real time. This system exposed large-scale mismatches and helped recover massive tax leakages, while improving invoice trail integrity. One key takeaway from India is that technology alone isn't enough — effective training, stakeholder awareness, and robust onboarding are critical to success. The Peppol model: A path to global compatibility Peppol is like the global party planner for e-invoicing — making sure every guest (buyer or seller) shows up on time, wears the right outfit (standard format), speaks the same language (structured data), enters through the approved door (access point), and follows house rules (security and validation). Whether the party's in Singapore, Sydney, or Sharjah, Peppol ensures the compliance stays smooth and no one gets lost in translation. For the UAE, it could be the key to hosting seamless e-invoicing across the GCC ensuring flawless digital harmony. Countries like Singapore and Australia have already adopted Peppol to simplify both domestic and international e-invoicing. For the UAE, it could serve as the backbone for GCC-wide interoperability, reducing system mismatches and enabling seamless digital trade in B2B and B2G environments. The time to act is now The FTA may have set the deadline for 2026, but readiness must begin today. Companies should assess their ERP capabilities, ensure XML/JSON compatibility, engage with registered ASPs, and prepare teams for new workflows. This transformation isn't just about compliance — it's about competitiveness. The UAE Vision 2031 imagines a fully digital tax ecosystem powered by AI, real-time validation, and data transparency. E-invoicing is its gateway. Final thoughts The writer is Associate Partner, MICS.
Khaleej Times
3 hours ago
- Khaleej Times
India to maintain Russian oil imports despite Trump threats, government sources say
India will keep purchasing oil from Russia despite U.S. President Donald Trump's threats of penalties, two Indian government sources told Reuters on Saturday, not wishing to be identified due to the sensitivity of the matter. On top of a new 25% tariff on India's exports to the U.S., Trump indicated in a Truth Social post last month that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters he had heard that India would no longer be buying oil from Russia. But the sources said there would be no immediate changes. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Justifying India's oil purchases from Russia, a second source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector. Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, the source said. The New York Times also quoted two unnamed senior Indian officials on Saturday as saying there had been no change in Indian government policy. Indian government authorities did not respond to Reuters' request for official comment on its oil purchasing intentions. However, during a regular press briefing on Friday, foreign ministry spokesperson Randhir Jaiswal said India has a "steady and time-tested partnership" with Russia. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," he said. The White House did not immediately respond to requests for comment. India's top supplier Trump, who has made ending Russia's war in Ukraine a priority of his administration since returning to office this year, has expressed growing impatience with Russian President Vladimir Putin in recent weeks. He has threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources. But while the Indian government may not be deterred by Trump's threats, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022 - when sanctions were first imposed on Moscow - due to lower Russian exports and steady demand. Indian Oil Corp, Hindustan Petroleum Corp , Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week or so, four sources told Reuters. Nayara Energy - a refinery majority-owned by Russian entities, including oil major Rosneft, and major buyer of Russian oil - was recently sanctioned by the EU. Nayara's chief executive resigned following the sanctions, and three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions, Reuters reported last week.
Khaleej Times
3 hours ago
- Khaleej Times
Never mind Wall Street records, investors rethink US market supremacy
A rebound on Wall Street and in the dollar has not allayed investor concerns about the ability of U.S. assets to outperform overseas markets, with a fresh tariff salvo once again denting market optimism after a string of trade deals struck by the Trump administration perked up sentiment for equities to set record highs. The sliding dollar, down about 8% this year against a basket of major currencies, and the ballooning fiscal deficit are shaking the conviction that U.S. financial markets will deliver world-beating returns. For more than a decade, the concept of "American exceptionalism" - the conviction that the United States' democratic system plus its huge and liquid capital markets offer unique rewards - has been little challenged by investors. But ongoing uncertainty surrounding tariffs is rattling confidence. While the deals struck by Donald Trump with the European Union, Japan and South Korea have delivered some relief, the U.S. president late on Thursday slapped dozens of trading partners with steep tariffs. A market shakeout earlier this year caused by Trump's first tariff announcements triggered a re-evaluation. The U.S. market's standing appears "a little bit bruised," said Lori Heinel, global chief investment officer at State Street Investment Management. "The overhang of the (government) debt makes it less attractive to have dollar-based assets," she added. In a survey conducted in late May and June, market research consultancy CoreData found that many institutional investors and consultants, collectively overseeing $4.9 trillion in assets, are scaling back exposure to the U.S. Among respondents, 47% are cutting their strategic, long-term allocations to U.S. markets. While investors have become more upbeat on the outlook for Europe, as well as for China and other emerging markets, bullishness toward U.S. markets now lags those regions. That, said Michael Morley, head of CoreData US, marks 'a massive reversal' from attitudes two years ago. The latest wave of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, sent global markets tumbling on Friday. The announced duties were "somewhat worse than expected," analysts at Societe Generale said in a note. "Markets responded more negatively to the August 1 announcement than to other news in the past two months, but the reaction was far less severe than on April 2," they said. TARIFF IMPACT OVERDUE? Investors began reconsidering their allocations following Trump's "Liberation Day" tariff announcement on April 2, reassessing the allure of "brand USA" and fretting about a new recession. The Trump administration then paused tariff rollouts and subsequently began announcing deals that cap tariffs at lower levels than initially proposed. Stocks rebounded, with the SP 500 soaring 27.2% from its April 8 close to its July 31 close, setting a series of new records. CoreData, however, found that 49% of institutions believe that markets now are too complacent about the impact of U.S. tariffs. U.S. consumer prices increased by the most in five months in June, according to Consumer Price Index data, suggesting that tariffs are boosting inflation. Other data points to a moderation in economic activity, and second-quarter growth was mainly strong because imports were weak. Global asset manager Man Group, which manages roughly $193 billion, is wary of overweighting U.S. assets. 'This is an opportunity for investors to take some profits, rebalance and go to neutral on the U.S.," said Kristina Hooper, chief market strategist at Man Group. Beyond tariffs The dollar's status as the global reserve currency may be in question as the U.S. forfeits the role of free trade facilitator, said Thierry Wizman, global FX and rates strategist at Macquarie Group, adding the firm expects to sell the dollar on any rally. After suffering its worst first-half performance since 1973 this year, the dollar posted its first monthly gains for 2025 in July, as investors regained confidence in the wake of trade deals. Also contributing to the reassessment of U.S. market supremacy is the risk of monetary policy being politicized. Trump has repeatedly called for lower interest rates and threatened to remove Federal Reserve Chair Jerome Powell. A recently approved tax and spending bill, meanwhile, will add trillions to the government's debt, exacerbating longstanding deficit concerns. Investors are likely to respond by seeking higher compensation for the risk of owning long-dated Treasury securities "There's very, very real risk that yields go significantly higher because of the deficit," said Man Group's Hooper. For many, the buoyant U.S. stock market and optimism surrounding the U.S. tech sector have made it hard to turn bearish. "The bottom line is that the U.S. has some of the most innovative and profitable companies in the world, and the deepest capital markets," said Kelly Kowalski, head of investment strategy at MassMutual. Anxiety about the demise of U.S. pre-eminence is "overblown," she said. Concerns over weaker foreign demand for U.S. debt have eased in recent weeks. After selling a net $40.8 billion of Treasuries in April, foreigners resumed buying to the tune of $146 billion in May, the latest government data showed. Also, while European stocks handily beat their U.S. counterparts in March, that gap has narrowed with every new trade deal announced. As of the end of July, Europe's STOXX 600 was roughly neck and neck with the SP 500. "The big factor in the room has nothing to do with policies, but technology," said Richard Lightburn, deputy chief investment officer at macro hedge fund MKP Capital Management. "It still feels like early innings for AI adoption and integration." Anthony Saglimbene, chief market strategist at Ameriprise Financial, continues to recommend a slight overweight to U.S. stocks relative to other global markets. "Call it 'exceptionalism' or just 'clarity.' The macro environment in the U.S. is comparatively more stable."
