The value-added tax (VAT) will be introduced in the UAE from January next year. The online registrations for the VAT eligible businesses have already begun on the FTA website. Among the industries that will be affected by VAT, real estate sector is the major one. In this article, we will try to understand the impacts of the new tax system in this industry.
Real Estate Definitions for VAT
Supply: Any sale, lease or transfer of rights of any property will be considered a real estate supply for the purpose of the tax. Read More
The Value-added tax is all set to be implemented in Saudi Arabia, UAE and other GCC countries from January 1, 2018. Businesses are wondering which items/services will be taxed under VAT and which are exempt. Meanwhile, the recent news about VAT on fuel products has created a stir in the market. Let’s find out more about VAT on fuel and its impacts.
VAT on Petroleum Products
If you are wondering whether petroleum products such as petrol, gasoline, etc would be under VAT coverage or not, they will. The VAT will be applicable to petrol at the standard rate of 5 per cent. Read More
The Value Added Tax (VAT) to be launched on January 1 in UAE will bring many changes in the price structure of the goods and services in the country. While some basic things like school fees will be exempt from tax, many other essential items such as water, food, and jewelry may be included in the VAT. However, the low tax rate of 5% is not expected to make a very big hole in the pockets of most people.
Even if the prices of some products or services change after VAT implementation, the difference should be too minor to be noticed. Read More
The economic vision statement, which was released by the GCC governments recently, is expected to bring a healthy competition among countries in the region. It will also diversify the economies and lower oil dependency in these countries.
The following economic visions were announced by the GCC countries with the aim to make the economic conditions stronger and reduce the dependency on oil. Read More
Excise duty was implemented by the UAE on October 1. The excise tax provision requires registered businesses to file monthly returns on or before 15th of every month. The last date for UAE businesses for filing their October tax returns is November 15, 2017. The Federal Tax Authority has requested companies to file their returns on time, otherwise, penalties would be levied.
The excise duty tax is applicable to the following items:
- Carbonated drinks – 50% duty
- Tobacco products and energy drinks – 100%
The Value Added Tax, which is being launched in the UAE and five other GCC countries from the next year, includes a tax at the fixed rate of 5%. The businesses and consumers in the regions are getting themselves familiar with the laws and provisions of VAT as the launching date approaches. Meanwhile, an update regarding the tax on foods has surfaced recently.
VAT on Foods
The Federal Tax Authority (FTA) has recently confirmed that all the food items will be taxable under the VAT, which will be implemented on January 1, 2018. Read More