According to the new VAT law which is going to be implemented from 1st January 2018 in UAE, schools don't need to pay VAT, however there is still vulnerability with regards to private schooling foundations. It is still not clear as specialists say greater lucidity is required about how VAT is going to affect private schools and education sector.
VAT will be another wellspring of generating incomes for governments up in the Gulf Cooperation Council (GCC). VAT on rentals for residential or commercial properties in UAE is one of the concerning areas which will go through a big change in new VAT regime.
What is the importance of fixed asset depreciation? The depreciation of fixed assets is primarily used to allocate cost over their functional and applicable lifetime retaining their usefulness. Companies compute fixed assets depreciation for taxation and accounting purposes and also to estimate their repair and replacement costs. In this post, we will highlight methods and ways to calculate it.
GCC regions are going to introduce Value added tax (VAT) effective from 1st January 2018, it will affect the entire system as it will have a broader impact on the businesses, SMEs have to prepare themselves in advance as they have to be more proactive in preparing themselves for VAT preparation.
The introductions of VAT will help the UAE generate extra revenues to finance open consumption and to reduce its reliance on hydrocarbons, in accordance with the national expansion system but the question is who is going to bear the burden, let’s find out.
The Ministry of Finance UAE, recently proposed the new law that allows them to impose a tax on all goods and services at a standard rate of 5%, and it's called Value Added Tax (VAT).
The task of controlling, supervising and overseeing the ordering, storage and use of involved components that an organization or company makes use of in the production of the items or components markets and sells to customers is known as Inventory Management.
The Gulf Cooperation Council has already given the green signal to the imposition of Value Added Tax in their respective nations. Now they reached another milestone by publishing the Unified Agreement for VAT in the official gazette of one of the member states, Saudi Arabia. The Agreement provides the blueprint or framework for the operation of VAT across the GCC which will eventually be implemented by each GCC member nation through legislation and other instruments. This Agreement thus gives a final call to all the companies operating in the Middle East to put in place or further their VAT implementation plans.
Businesses in UAE will soon have to embed a new taxation system into their existing operational process, as Ministry of Finance, UAE has introduced new goods and service tax for businesses based inout of UAE. VAT registration required for UAE companies with revenues over Dh375,000, says Ministry of Finance, UAE.
On 23 August 2017, the UAE issued Federal Decree-Law No. 8 of 2017 on Value Added Tax (UAE VAT Law) to present VAT over the UAE. This step will change UAE structure a lot as everybody is keeping their eyes on the effects of implementation of these new laws.