As two countries within the GCC – the UAE and Saudi Arabia – are ready to embrace a new tax regime in the form of Value Added Tax (VAT) on January 1, 2018, It is widely observed that UAE businesses are now preparing to assess the impact of VAT and get used to the changes it will bring which is a welcome move.
As per the Federal Decree No. (08) Of 2017 on Value Added Tax (VAT) and the Ministry of Finance (MoF), in collaboration with the Federal Tax Authority (FTA) had organized four workshops on how to deal with Value Added Tax, in Abu Dhabi and Dubai.
The workshop targeted ministries and government entities across the country. Topics discussed in the workshop were highly beneficial to the ministries and federal entities regarding the latest developments in relevant tax legislation, practical examples on the application of VAT, online registration through the FTA’s website, filling tax returns, penalties with regards to tax evasion and general non-compliance etc.
Workshop participants introduced to the impact of VAT on government entities and the independent activities carried out by government entities that fall outside the scope of VAT. Independent activities carried out by government would fall in the category of non- commercial activities, so they cannot levy taxes on such activities.
The Abu Dhabi Chamber of Commerce and Industry in cooperation with the Federal Tax Authority (FTA) organised some workshops before related to VAT in UAE.
