External auditors play a critical role in validating company financial information. Potential lenders and investors often require externally audited financial statements before doing business with a company.so it is really important for the companies to get their accounts audited.
Introduction of VAT is taken as a positive and a very strong step of UAE government as it is estimated that the introduction of VAT could generate Dh12 billion in its first year and Dh20 billion in its second year, but with that jurisdictions have set out thresholds depending on turnover or other transaction-specific criteria, but once the mandated threshold is exceeded VAT registration becomes mandatory.
The GCC states have announced VAT and also concluded a broad framework for the introduction of VAT where they have set out the underlying principles of VAT laws for the six GCC countries who are VAT ready, some member states will have some flexibility on how VAT will be applied to some key sectors in their jurisdiction.
As Value Added Tax (VAT) is all set to become applicable in all GCC countries from 1st January, 2018, there are many things people want to know about the new tax regime.
Ever since the Ministry of Finance has announced the introduction of new consumption tax called Value Added Tax in UAE, the whole nation is trying its best to get in terms with the new tax rule and adjusting their personal and business operations in accordance with the law
As the VAT implementation date is nearing, the businesses are immense pressure to set up the entire VAT enabled IT Platform for easy VAT management. In a recent survey by Thompson Reuters & ACCA highlighted the different scenario altogether. According to the survey majority of the businesses are still not VAT ready as their IT system is yet to be updated in accordance with the proposed tax law. This has exposed and highlighted the number of shortcomings and challenges faced by businesses currently, ahead of the VAT implementation.
UAE is about to implement a new taxation law in the form of Value Added Tax or VAT but many nations of the west including the UK has successfully implemented and executed the law. At times reforms do not achieve their objectives successfully and sometimes even have to be reversed.
Majority of the UAE residents are acutely aware of VAT and they have been closely following every new update relating to the new tax regime as its implications are far more down rooted in their day to day lives. With the announcement of VAT to be implemented in the UAE from 1 January 2018, many small businesses would be worried about the impact this has on their customers.
Dubai is going to introduce VAT as it is much awaited law which was issued by the president His Highness ShaikhKhalifa Bin Zayed Al Nahyan from 1st January 2018.
The members of the GCC council are in the midst of approving the highly anticipated common framework for the introduction of a Value Added Tax (VAT) system in the GCC. The common VAT framework will form the basis for the introduction of a national VAT system by each Member State.