Introduction of VAT in UAE and its Implementation
Gulf countries have decided to implement taxation as part of the governments' efforts to diversify revenues in the context of sharp decline in oil prices. The International Monetary Fund has been recommending fiscal consolidation in the Gulf Cooperation Council through diversification of government revenues and reduction of subsidies. New initiative to provide the country with a new source of income, the UAE government introduced VAT, from January 1 st , 2018 . Before Implementation of VAT the country was highly dependent on oil and other hydrocarbons, now with the implementation of VAT, this is expected to change. VAT will be charged at a flat rate of 5 percent. Companies whose turnover fall between Dh1.87 million and Dh3.75 million will have the option to register for VAT during the first phase of the VAT implementation. Optional threshold limit is AED 187,500 per year. Indian Muneem knows from experience that companies need assistance suitably for VAT ...