ABU DHABI 21 August 2017: Only four services are to be exempted from the imposition of the coming Value Added Tax (VAT) in the UAE – financial services, undeveloped land, local transport and houses.
This is in order to prevent any price hikes, said Saeda Al Qayoumi, FTA Tax Advisor.
She was speaking during a ‘VAT for the Import and Export Sector and Registration Mechanism’ awareness workshop organised by the Abu Dhabi Chamber of Commerce and Industry, in cooperation with the Federal Tax Authority, on Sunday, said Wam.
The workshop was to spread awareness among import and export companies on the mechanism of applying the value added tax in the country.
“Up to 85 per cent of world countries apply VAT and in the UAE it will impact all consumer staples, with only four services to be exempted: financial services, undeveloped land, local transport and houses, in order to prevent any price hikes,” said Al Qayoumi.
The tax will impact some medications that are not directly used for treatment, she noted, adding that VAT on direct and indirect exports will be zero, while input tax can be fully recovered if it relates to a taxable supply made (5% or zero-rated supply).
There will be special tax rules on commodities transported into the GCC region, she added.
The workshop was attended by Abdullah Ghurair Al Qubaisi, Deputy Director General of the Abu Dhabi Chamber of Commerce and Industry and the chamber’s top executives.
VAT awareness workshop by Sharjah Chamber
SHARJAH: A workshop on disseminating awareness about VAT will be organsied by the Sharjah Chamber of Commerce and Industry in collaboration with the Federal Tax Authority on August 23rd.
The workshop will be targeting businesses in the Emirate to prepare them for the application of the new Value Added Tax system.
The system includes excise tax, which will be introduced by the end of this year, and VAT which will be introduced early next year.
The workshop aims to ensure that businesses fully understand the new taxes, and that they have enough knowledge to take the necessary measures to comply with the tax laws, said Mohammed Ahmed Amin, Assistant Director General for the Communication and Business Sector at the Sharjah Chamber.
“The Sharjah Chamber will spare no efforts in enhancing the awareness of all businesses about the new tax system, with special emphasis on the private sector retail, export and import companies to help them reach full assimilation of the new rules and regulation,” he added.
By Rajive Singh