Agxauditors are ready to welcome VAT which might be one of the biggest tax reforms to be introduced in a GCC country. With the setting up of the Federal Tax Authority, the UAE government has moved into the fast lane to implement Value Added Tax (VAT) in UAE. With the deadline of January 2018, the moot question is whether business in the UAE are geared up to ensure compliance with VAT. It is therefore considered pertinent to examine what issues are expected to be encountered and the solutions if any to address these issues.
Noted that VAT tax will be imposed on most of the goods & services transacted in the UAE, we have considered it vital to adopt changes involved in the operations, maintenance, delivery and service . A stumbling block for governments in the GCC region is the administration of tax as they have to build the experience and infrastructure to collect and enforce compliance. The governments will rely on tax registered companies to collect the tax and deposit the tax periodically as per the schedule for filing returns.