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 will soon introduce awareness and education campaigns to spread awareness in the people of the UAE. The authorities are working with an aim to explain everyone the significance of VAT, and its 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?
Every business in the country is urged to comply with their upcoming VAT responsibilities. The government has still not fixed the exact fees and penalties for non-compliance.