The UAE Minister of State for Financial Affairs, His Excellency Obaid Humaid Al Tayer was speaking in Dubai on 24 February after a joint press conference with Christine Lagarde, Managing Director of the International Monetary Fund (IMF).
VAT is expected to be introduced at a rate of 5% with some limited exceptions including basic food items, healthcare and education. The UAE are planning to implement on 1 January 2018 – other GCC countries may do so at the same time or by 1 January 2019 at the latest.
President His Highness Shaikh Khalifa Bin Zayed Al Nahyan issued a decree on Monday Dated October 25, 2016 to set up a new authority to collect data, information and statistics related to federal taxes.
The Federal Tax Authority (FTA) will be responsible for setting up and maintaining records on taxpayers and on taxes paid. It will also issue necessary guidelines and clarifications to taxpayers on matters related to federal taxes and related fines.
At the beginning of 2018, the government of UAE will roll out the first-ever iteration of Value Added Tax in the country, which will be levied on a range of applications in order to stimulate the local economy. The Ministry of Finance specifies a 5 per cent VAT to be implemented on transactions for various goods and services, as well as on the use of public infrastructure and services.
Dubai, as a part of the UAE, will be involved in developing a legislative framework for the tax, along with other countries in the Gulf Cooperation Council, (GCC) to ensure that the levy benefits and diversifies the local economy as planned. Make sure your business is prepared for the economic impact of the legislation, with the help of a professional VAT consultant in Dubai – partner with MAC & ROSS Chartered Accountants today.
Due to the nascent nature of the legislation in this country, most businesses only have a vague idea about the requirements involved in VAT compliance, such as the proper documentation and filing procedures entailed in the compliance process.
MAC & ROSS Chartered Accountants have a team of tax specialists who can help your business structure in-house recording and filing processes to ensure that your company does not incur any penalties from improper compliance. We will help you identify the potential financial challenges you might face in the implementation of VAT.We can also assign you a dedicated VAT consultant to update you on the latest developments regarding the legislation.
With more than three decades of experience providing localised accounting and auditing services in UAE and overseas, we have the proficiency and insight to help you understand the ins and outs of this new legislation. Our team of certified auditors, accountants, and tax specialists capable of developing a smart and proactive strategy to help your company tide the changes that are to come.
Get in touch with us today, and speak to a VAT consultant from our team.