About VAT Implementation and Registration Services in UAE

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About VAT Implementation and Registration
Services in Dubai, UAE
Info_at_businesslinkuae.com
971 43 215 228
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2
Introduction

• The United Arab Emirates (UAE) a member of the
  Gulf Cooperation Council (GCC) is getting ready
  to roll out the new Value Added Tax (VAT) regime
  on the first day of the New Year.
• But, what does VAT actually mean? How does it
  impact common mans life? The aim of this post is
  to throw some light in this direction.

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3
VAT implementation

• VAT implementation in Dubai, UAE, a GCC member
  country, can be considered as another source for
  raising governments revenues.
• According to estimates, the UAE government will
  generate additional revenues of over Dh12 billion
  in the first year of implementation of the VAT.

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4
The decision

• The decision to implement VAT was taken by the
  governments in GCC member countries with a view
  to diversifying revenue sources in the wake of a
  sharp drop in oil prices.
• Further, the recommendation of the International
  Monetary Fund (IMF) that the members of the GCC
  should diversify their revenue sources and reduce
  subsidies to achieve fiscal consolidation had put
  the countries under pressure.

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5
As part of

• As part of the implementation of VAT in the UAE,
  it is mandatory for companies reporting annual
  revenues of more than Dh3.75 million to register
  under the VAT system.
• On the other hand, registration is optional
  companies earning revenues in the range of Dh1.87
  million to Dh3.75 million during the first stage
  of VAT implementation. Eventually, all companies
  will have to have VAT registration.

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Even after VAT

• Even after VAT implementation VAT registration
  services in Dubai, the UAE will continue to
  remain tax-free in several ways. This is because
  salary income is not taxed in the country.
• Further, free zones would continue to be tax
  havens, offering even complete ownership for
  foreign investors.

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In order to

• In order to ensure that the impact of VAT on
  common man is minimal, the government may either
  exempt or zero-rate many supplies.
• Most governments implementing VAT focus on taxing
  consumers discretionary expenditure. This is to
  protect people earning lower incomes.

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8
According to

• According to an announcement made earlier by the
  UAE government, VAT will not be applicable in the
  case of 100 food items, health, bicycles,
  education, and social services.
• However, VAT will be applicable in the case of
  electronic items, smartphones, cars, watches,
  eating out, jewellery, and entertainment. It is
  also expected that the GCC members will levy
  excise duties on beverages that are harmful to
  health, especially those that have high sugar
  content.

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9
Companies supplying

• Companies supplying products or services for
  which VAT is applicable will be allowed to
  reclaim VAT on costs.
• On the other hand, VAT cannot be reclaimed when
  supplying products or services exempted from the
  VAT.

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As VAT

• As VAT is levied on the price paid by the
  customer, cost of products and services may
  increase.
• However, suppliers can decide the price of the
  products or services they provide.

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11
There is

• There is hardly any time left to clearly
  understand the implications of the value-added
  tax system and make the required changes.
• In addition, the complexity and size of a
  business will determine the amount of effort
  required to implement changes. However, it is
  important to take the impact into consideration
  and deal with it in the best possible manner.

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971 43 215 228
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12
If you are

• If you are looking for VAT consultation and
  registration services in Dubai UAE..
• Please call Business Link UAE at 971 43 215 228
  or email to us at info_at_businesslinkuae.com

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971 43 215 228
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ABOUT US

• We are VAT Consultants in Dubai and we provide
  VAT registration services, and accounting and
  auditing services for small and medium companies.
  We have a thorough understanding of UAE rules and
  regulations and the requirements to be met for
  setting up different types of businesses.
• We work with complete transparency and clients
  will not be burdened with hidden costs. In
  addition to providing cost-effective business
  solutions, we work as per the time frames agreed
  upon.

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971 43 215 228
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14
About us
Business Link UAE Contact No 971 55 6070
118, Telephone No 971 43 215 228 Email Id
Info_at_businesslinkuae.com Address Oasis Center,
3rd Floor, 104, Sheikh Zayed Road, Dubai,
UAE www.businesslinkuae.com
Info_at_businesslinkuae.com
971 43 215 228
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THANKS!
Any Questions?
You can contact us at 971 43 215 228
Info_at_businesslinkuae.com
971 43 215 228
www.businesslinkuae.com