The announcement for the introduction of VAT in UAE by January 2018 was made way back in the beginning of 2016. And here we are in the middle of 2017 gearing up for the implementation of the same.
AGX, as a firm of professional auditors, have been asked by almost all our clients as to how VAT will be effected. What the procedures for VAT will be. We are also aware of numerous workshops being held in the country about VAT and have also in fact attended some of them. But other than general guidelines on how the same may be implemented (which we are well aware of having handled VAT back in India), these workshops were not very helpful.
We know for a fact that the general rate of VAT will be 5%. The mandatory threshold limit for businesses to register for VAT is if their taxable supplies and imports exceed AED 375,000/- (with a voluntary threshold of AED 187,500/- ). As the days count down to 2018 (how quickly time has flown in 2017), we are also eagerly waiting for further updates from the Ministry so that we can assist our clients to be prepared.
In the meantime, the Ministry link for VAT updates is ” https://www.mof.gov.ae/En/budget/Pages/VATQuestions.aspx”.