Sun 17-12-2017 16:02 PM
ABU DHABI, 17th December, 2017 (WAM) — H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, has called on all businesses to comply with the executive regulations of the Federal Law No. 08 of 2017 on Value Add Tax, VAT, and register online via the Federal Tax Authority’s website to receive a tax identification number, and to avoid any administrative penalties for violation of tax laws in the UAE.
Sheikh Hamdan urged businesses to expedite and complete the registration process and update their data, to ensure full preparedness and compliance with the tax system as it will come into effect on 1st January, 2018.
“Applying VAT plays a key role in building a sustainable knowledge economy, contributing to the infrastructure for the future development, strengthening public services, and enhancing the UAE’s global competitiveness,” Sheikh Hamdan added.
As the entity responsible for the legislative aspects of the tax system in the UAE, and to raise awareness around VAT, the Ministry of Finance announced details of the executive regulations for the Federal Law No. 08 of 2017 concerning VAT, and the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
He continued, “The Ministry of Finance works in coordination with the Federal Tax Authority to ensure an easy application process for the all VAT related tax procedures. We also put great emphasis on supporting all business sectors in the country as they go through the process of VAT related change, allowing them to apply VAT in a simplified manner through accessible and user-friendly digital systems. These measures have been implemented to avoid imposing fines on affected companies due to non-compliance with tax regulation, and to support them in their financial activities.
VAT will be applied in accordance with the unified VAT Agreement for the Cooperation Council of the Arab States of the Gulf, which clarifies provisions relating to commercial transactions between GCC States. It also provides a common agreement on certain provisions such as the basic rate of value added tax and the registration limit, and gives countries discretion to choose treatment in certain sectors where it does not affect intra GCC trade.
WAM/Rola Alghoul/Nour Salman