VAT in the UAE. June 2017 update from the BCB.

27 Jun, 2017 - Consumer & Retail

 

Value Added Tax (VAT) is due to be introduced in the UAE and wider-GCC on January 1st 2018; you can read about the general context & drivers in a previous blog, tors to the UAE will not be exempted from paying VAT at the point of sale. Whether they will be able to claim a tax refund subsequently is yet to be confirmed.

-If the initial VAT roll-out date is followed, businesses will start registering for VAT from October 1st 2017. Companies will have the option to register online.

-The UAE government is currently in the process of defining the exact fees and penalties for non-compliance for companies that fail to register for VAT.

-Businesses are advised to ensure that all commercial contracts they enter should include a clause defining that the VAT burden can be passed on to the customer.

This is a fast moving area and whilst the BCB will seek to highlight news & relevant developments that we’re aware of, we are not tax advisors and we strongly recommend that professional advice is taken as the legislation becomes more clear.  We can help you find qualified providers in this field.