Posted on Nov 01, 2017
VAT is an indirect tax which is imposed on goods and services, it is a consumption based tax as it is added at each stage of production and now UAE is all set to impose VAT in their system at the rate of 5% from 1st January 2018 and Other GCC countries on or before 1st Jan.’2019.
VAT is collected by VAT enrolled organizations which make supplies of goods and services in the course of their business. VAT is imposed on business at every level of supply of goods and services as it is imposed on the bases of different factors. The consumer is the ultimate payer of the tax as they ultimately pay a higher price for the taxed goods and services. As it is announced in all seven emirates of UAE that they are going to introduce VAT from the very beginning of the year, every member state of UAE is going to set up their own set of rules and regulations regarding VAT imposition where it is important to keep in mind that VAT is self-appraisal nature so every business needs to maintain record, evaluate and report its VAT commitments and qualifications, as per the law, to the duty experts.
Organizations and people occupied with any business movement whose turnover surpasses the compulsory VAT enlistment edge determined by the particular national VAT laws must enroll for VAT. Voluntary VAT registration will be optional, Organizations not enlisted for VAT can't charge VAT on their deals and cannot claim any VAT incurred on their inputs.
Every member of GCC should have complete knowledge about VAT so that they can easily implement VAT as they can also provide tax periods, tax returns, refund, and payments. The Banks and Financial House are ineligible for VAT as far as the administrations gave by them, rather, they may be qualified for input tax "in light of expense recuperation rates dictated by every Member State". Education, Health, Weather & Real Estate, however they will be exempted but the final and exact decision is still pending on the same. Every taxable person will be provided a Tax Identification Number (TIN) so that it will be easy to track past records and subtle elements to be incorporated while filing tax return form and details that are required in a VAT impose receipt. The GCC UAVAT likewise gives data on the most proficient method to determine the question that might emerge. Each assessable individual will have their entitlement to challenge the choice made by the expert in the nearby specific courts.