As the UAE has announced the official date of the implementation of the VAT, i.e Jan. 1 2018, the small businesses want to know the benefits of the upcoming tax regime and what change it will bring in their lives. The Entrepreneurs who are into the process of introducing specific software for the VAT in UAE said that the value-added tax system will boost the economy of the GCC that has been hit by the downfall of the oil prices in the recent times.
They believe that the businesses will be given special treatment in the long term, after the imposition of the 5 percent tax on goods and services in January.
As per the Khaleej Times, Charges and commissions applied by exchange houses on remittances in UAE may fall under the category of VAT.
VAT has been introduced from 1st January 2018 in UAE. It is one of the major decisions taken by the government. This decision of Government which helps to diversify more revenue sources in UAE in a bid to move away from dependence on oil income.
CEO of UAE Exchange Group, Promoth Manghat, said that VAT on remittance fee is one of the popular topics that has been currently discussed by the media reporters and service providers. As per the information sources that we have got from experts, remittance fee may be the subject of VAT in upcoming future. Read More
The downfall in the price of oil has made the nations whose main businesses were revolving around oil business. The revenues generated has been forced to be altered as the gross domestic product(GDP) is dependent on the revenue generated. The only need of VAT in UAE to fill the void due to the lost oil revenue. Read More
The VAT has been implemented from 1st Jan 2018, Hospitality segment which includes hotel accommodation, entertainment activities, and restaurant services. An individual must have to pay additional costs at the time of availing hospitality services.
Six states in the Gulf Cooperation Council (GCC) mutually agreed to apply VAT. Through VAT, UAE government will be able to generate $25 billion (Dh91.8 billion) every year.
Every individual in UAE, are expected to pay tax for purchasing goods and services. Applying VAT to goods and services is one of the best measures taken by the government. Through this tax system, the country will be able to generate more revenue. It is expected that UAE country might generate Dh12 billion revenue in introduction year (2018) and might be able to collect up to Dh20 billion in 2019. Read More
According to Tax Experts, the United Arab Emirates’ (UAE) judgment to impose value-added-tax (VAT) on non-life insurance is expected to push up the cost of property premiums, health, and motor.
Motor Insurance And Health Insurance Costs
The UAE is the largest insurance market in the Gulf Cooperation Council (GCC) region, where motor and health policies value for 70 percent of the market. The Gulf Arab state’s insurance sector got into trouble by the fall in oil prices, and UAE companies have been dealing with the increase in the cost of motor insurance and health insurance.
Back in 2014, the UAE government made it compulsory for all the residents to get health insurance. It also made an immediate hike of 100 percent on the car insurance from 2017 beginning. Read More