1.How can someone access UAE Tax Law?
A. UAE VAT law is currently being finalized, and will be published once approved. Announcements regarding the Tax Law will be made to the press and details will be published on the Ministry of Finance website. The primary source of information regarding the UAE VAT Law is the Ministry of Finance website. We recommend that you bookmark the page and visit it frequently to stay up to date on VAT related information.
2. What other taxes is the UAE considering?
A. As per global best practice, the UAE is exploring other tax options as well. However, these are still being analysed and it is unlikely that they will be introduced in the near future. The UAE is not currently considering personal income taxes, however.
3.Will this impact economic growth of the UAE?
A. Our analysis suggests that it will help the country strengthen its economy by diversifying revenues away from oil and will allow us to fund many public services. This is a sign of a maturing economy.
4.Where can I learn more about the UAE’s plan to implement VAT?
A. Over the course of 2016, the government will launch awareness and education campaigns to educate UAE residents, businesses, and other impacted groups. Our aim is to help everyone understand what VAT is, how it works, and what businesses will need to do to comply with the law.
We will also set up a website in 2016 where you can find information to understand the new tax in detail. A telephone hotline will also be established so that you can call and speak to one of our employees directly about VAT.
5.Are there any groups (individuals or organizations) that will be exempted from paying VAT?
A. VAT is a broad based tax and it is not intended that there will be special exceptions for individuals. However, there may be some special rules on VAT for organizations such as government entities as well as refunds available in some circumstances, especially where international obligations require us to make those refunds.
6.Changing my business systems for VAT reporting will cost money. Can the government help?
A. When VAT is introduced, the government will provide information and education to businesses to help them make the transition. The government will not pay for businesses to buy new technologies or hire tax specialists and accountants. That is the responsibility of each business. We will, however, provide guidance and information to assist you and we are giving businesses time to prepare.
7. What are the penalties for not complying with a business’s VAT responsibilities?
A. Everyone is urged to fully comply with their VAT responsibilities. The government is currently in the process of defining the exact fees and penalties for non-compliance.