With the announcement by the Ministry of Finance that VAT will be implemented in the UAE by 1st January, 2018, companies are on a limited timeline to prepare for the first phase of VAT implementation in their business. HLB Hamt tax department have already made substantial progress on preparing their tax administration systems and focusing its clients to develop their business in preparation for VAT.
Value Added Tax (VAT) is an indirect tax which is in place in more than 150 countries globally. United Arab Emirates in specific and GCC council in general has taken a decision to implement the VAT system with effect from January 1, 2018. The VAT rate has been agreed at rate of 5% on most of the goods and services. VAT will most likely impact every UAE business and with 1st January 2018 not being far, we will help you be prepared.
Examining the impacts of VAT in the UAE on a multi- dimensional basis – cash flow implications, accounting obligations, IT systems, governance procedures – making the necessary changes and testing the results is how we intend to equip businesses to be VAT ready.