Although the introduction of the VAT in the UAE was announced in time, there are question marks everywhere, especially from companies which are interested if the prices need to be increased when implementing the tax, or not.
The financial authorities in Dubai have settled the VAT rate for particular goods and services which are going to be levied starting next year in January. This kind of tax will also be imposed on services offered in Dubai’s airports.
After numerous debates and discussions with the IMF and other important financial organizations in the world, it seems like the UAE agreed on the VAT, a tax which will be imposed starting with January 2018.
The UAE will implement the VAT tax rate starting with January 2018, according to the requests and suggestions of the IMF (International Monetary Fund).
Improving the tax revenue collection in the Gulf Cooperation Council (GCC) has been on a debate by the International Monetary Fund (IMF) that considers a corporate tax of 15% might help in this matter.
The VAT for businesses in the UAE was on the debate last year by financial and economic authorities in charge, and according to the latest news, this kind of measure will be adopted on January 2018.
Businesses in the UAE are more than concentrated on developing their operations and preserving their situation and status on the market.
UAE is recognized for its desirable taxation system, as it is the state that enforces few taxes on individuals and enterprises.
The value added tax was introduced for the first time in France and after that, many other republics started to adopt this taxation system.
Dubai is a great destination for emigrants from across the world, not just for the chances it promises, but also for the attraction of living a ‘tax-free’ life.