What other taxes in the UAE considering?
The UAE is also practicing for other Tax reforms. However, they are still getting analysis and it is hard to say regarding the implementation of them in near future.
Will this impact economic growth of the UAE?
Yeah, the implementation of VAT is believed to strengthen the economy of UAE by diversifying revenues away from oil and will help government generate revenues from Tax regimes.
Where can I learn more about the UAE’s plan to implement VAT?
The government has launched an awareness and education campaigns to educate UAE residents, businesses, and other impacted groups. Our aim is that whose business is in the vat so its help everyone understand what VAT is and how can be used, how it works, and what businesses will need to do to comply with the law.
its awareness campaign, the Ministry of Finance have to launch the first phases of the awareness sessions during the period from March until May 2017. These sessions were held in the different Emirates.
The authorities are working with an aim to explain everyone the significance of VAT working in the law.
Are there any groups (individuals or organisations) that will exempt from paying VAT?
VAT is a large level tax regime, which does not allow to offer special exceptions for individuals. Still, there are some rules on VAT for government entities and other organisations related to it and refunds available as well.
Changing my business systems for VAT reporting will cost money. Can the government help?
After implementing VAT, the government will offer information and education to the business holders to help them understanding new tax reforms. However, the government will not provide new technologies or hire tax specialists and accountants. But it will help in accessing the information regarding new tax regime.
What are the penalties for not complying with a business’s VAT responsibilities?
Everyone is urged to fully follow with their VAT responsibilities. The government is currently in the process have to launched exact fees and penalties for non-compliance.
Administrative penalties for offence will be decided by Cabinet and announced after issuance. There will be more penalties decided by the Courts in the case of tax evasion.
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