The Director-general of the Federal Tax Authority announces that Saudi Arabia AND the UAE will introduce VAT in January, with the other GCC countries following in due course afterwards.
However, Companies in the United Arab Emirates (UAE) will be able to begin registering for value-added tax (VAT) from the middle of September 2017 through the authority’s own website.
Around 300,000-350,000 companies in the UAE will be affected when VAT is implemented from January 2018, with no grace period. Companies will be expected to file VAT returns on a quarterly basis, but also have the option to pay in monthly installments if they prefer.
Larger companies will be targeted during the first phase of registration, both for VAT and for excise tax, which will initially be introduced in the UAE and Saudi Arabia, with other GCC states set to follow throughout the course of 2018.
The regulatory framework governing VAT and excise duty in the UAE will be introduced during the fourth quarter of 2017.
A levy of 5 percent of the value of purchases is being imposed as VAT on certain goods and services. VAT is likely to apply only to companies whose annual revenues exceed around $100,000 a year.
Information provided by Thomson Reuters Zawya
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