Value Added Tax (VAT) In UAE
H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates issued Federal Decree-Law No. (8) of 2017 on Value Added Tax. VAT in UAE is applicable from 1st January 2018 and registration for VAT is being handled through.
The Federal Tax Authority (FTA) is responsible for setting up and maintaining records on taxpayers and on taxes paid. It also issues necessary guidelines and clarifications to taxpayers on matters related to federal taxes and related fines.
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At the beginning of 2018, the government of UAE rolled out the first-ever iteration of Value Added Tax in the country, which levied on a range of applications in order to stimulate the local economy.
The Ministry of Finance specified standard rated VAT of 5 per cent implemented on taxable transactions for various goods and services, as well as on the use of public infrastructure and services.
FTA had issued many clarifications & guidelines to clear the issues around it. Due to the nascent nature of the legislation in this country, most businesses only have some basic idea about the requirements involved in VAT compliance, such as the proper documentation, proper interpretation of Articles of VAT Law and filing procedures entailed in the compliance process.
MAC & ROSS Chartered Accountants have a team of VAT consultants and tax advisors in Dubai 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 can also assign you a dedicated VAT consultant to update you on the latest developments regarding the legislation.
