VAT in the UAE and greater GCC is now a reality. Are you ready?
Our professional team can review your status and compliance obligations before the published deadlines. Please note, failure to register your business by 1st January 2018, will result in government fines. The registration process will take up to three weeks. REGISTER NOW to ensure you are not too late.
Why is the UAE implementing VAT?
The UAE needs to coordinate VAT implementation with other GCC countries as part of the ‘The Economic Agreement between the GCC States’ and ‘The GCC Customs Union’. The GCC has always worked together in designing and implementing new public policies with a collaborative approach which is best for the collective development of the region.
What is VAT?
Value-Added Tax or VAT is a tax on the consumption or use of goods and services levied at the point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world. All OECD countries except for the US have VAT (or a variation). While it feels exactly the same as a general sales tax to end-consumers, VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax.
VAT is charged at each step of the ‘supply chain’. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority. Only VAT registered businesses will need to charge and account for VAT.
Please complete our short survey to determine if you do. We will review and respond within 24 hours.