Michaela Merz

United Arab Emirates – Introduction of VAT, further progress

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634058_web_R_by_M. Hermsdorf_pixelio.deUAE government has made some progress in the process of introducing VAT in the country by 2018.

According to a recent Statement by the UAE Ministry of Finance officials, the registration thresholds under consideration are as follows:

Compulsory registration:
Businesses with annual revenues exceeding AED 3.750,000 (Arab Emirate Dirham) or circa £722,950 will be liable to register for VAT in the UAE.; and

Voluntary registration:
During the first phase of the implementation, businesses with revenues ranging between AED1.87m and AED3.75m may voluntarily opt to register under the VAT system.

As previously communicated, the UAE along with the other GCC Stages intend to implement a 5% VAT for goods and services from 1 January 2018. All six GCC States agreed on the main aspects of implementing VAT across the region, with expected exceptions for certain sectors, such as healthcare and education.

Furthermore, some general information can be found here:
VAT implementation

If you feel, that this could affect your company in the future, do not hesitate to contact:

Jeanine Daou at jeanine.daou@ae.pwc.com

Image source: M. Hermsdorf  / pixelio.de

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