Title: About VAT Implementation and Registration Services in UAE
1About VAT Implementation and Registration
Services in Dubai, UAE
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2Introduction
- 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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3VAT 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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4The 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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5As 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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6Even 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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7In 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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8According 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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9Companies 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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10As 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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11There 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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12If 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
Info_at_businesslinkuae.com
971 43 215 228
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13ABOUT 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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14About 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
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971 43 215 228
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15THANKS!
Any Questions?
You can contact us at 971 43 215 228
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971 43 215 228
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