Dubai Gold was liked by consumers just because of its design, purity, standard and competitive pricing as the comparison with other markets. More than 180 people, who are living in UAE like to purchase gold from Dubai instead of their own countries.
6 states all over the GCC (Gulf Cooperation Council) mutually agreed to collect VAT at the rate of 5 percent from 1st January 2018 on all non- essential luxury goods. From the introduction of VAT, GCC will be gained Dh12 billion in the UAE in the introduction year.
From 1st January 2018, it is expected that VAT has been implemented in UAE at the rate of 5 percent while purchasing goods and services. Some challenges faced by UAE at the time of implementing VAT are as follows:-
The supply chain is one biggest challenge faced while implementing VAT in UAE as it is an indirect tax and levied on the whole supply chain. Consumers are the end cycle of supply chain and pay tax at the time of purchasing goods and services. Companies who are dealing business with UAE and GCC members also have to pay tax. Consumers (Taxpayers), Businesses (Shareholders), Government (Tax collectors ) and Consultant (Tax Experts) are four important stakeholders which come under VAT framework. But the question is who will be affected the most by the tax system. Read More
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