UAE will introduce VAT (Value Added Tax) on 1st January 2018 at a rate of 5%. VAT will be introduced in the UAE in two phases. In the First Phase , companies with recorded revenue of more than AED 3.75m are obliged to register for VAT. Also within Phase 1, companies with revenue between AED 1.87m and AED 3.75m will have the option to register for VAT. In Phase 2, all companies will have to register for VAT however the date for Phase 2 is still under discussion. This may indicate the manner in which other GCC countries will phase in VAT. These limits were announce as of June 2016 as there is no clarity from Ministry of Finance on such limits and same was shown in news.
How Saif Chartered Accountants can help you :
- Perform an impact review on your business now to identify what needs to be addressed.
- Review of business processes and accounting systems to assess how these need to change.