UAE VAT
Posted by feroze, karachi, Pakistan on 18 May 2007 at 10:51 UAE time

Instead of introducing a Value added tax which then gives the room for input tax credit the UAE should introduce a flat sales tax at 5/6 percent applicable on all goods and services. This will be easy to monitor and implement and wont require the Mom and Pop operations to be experts in book keeping.

UAE nears introduction of VAT
Posted by ABDULKARIM, MANAMA, BAHRAIN on 17 May 2007 at 17:34 UAE time
Dear Shaquil, Well I am a native of Bahrain and I live in a world where rightly the young want better education, women want safer neighbourhoods and the sick want better hospitals. All of these require money and where will governments get it from if it was not for taxes? Or are you saying that the private sector should do it? That would be fine with me but then are you saying that the poor should go uneducated and untreated? Look, no body likes to pay taxes but without them there would be no governments and we will end up living in a jungle where only the strong survive. We should care for those who are not as fortunate as us and that is where taxes come into play. As for the difficulties that you may have faced living in the Gulf well that is another issue. But I tell you I have travelled the world and life here could certainly be much better. However, having admitted that the fact remains that the Gulf has the lowest tax regimes any where else in the world and that has to change if we want better living conditions. Taxes will have to be introduced and my hope that the authorities will learn from the experience of other countries where tax systems are nightmares as our friend from London has mentioned.

VAT
Posted by ABDULKARIM, MANAMA, BAHRAIN on 17 May 2007 at 12:58 UAE time

Dear Shaquil, 
Well I am a native of Bahrain and I live in a world where rightly the young want better education, women want safer neighbourhoods and the sick want better hospitals. All of these require money and where will governments get it if it was not for taxes? Or are you saying that the private sector should do it? That would be fine with me but then are you saying that the poor should go uneducated and untreated? 
 
Look no body likes to pay taxes but without them there would be no governments and we will end up living in a jungle where only the strong survive. We are humans and we should care for those who are not as fortunate as us and that is where taxes come into play. 
 
As for the difficulties that you may have faced living in the Gulf well that is another issue. But I tell you I have travelled the world and life here could be much better. However, having admitted to that the fact remains that the Gulf has the lowest tax regimes any where else in the world and that has to change if we want better living conditions. I can hope hope that authoriities learn from the examples of other countries and avoid the complexiites of their tax system as our friend from London has clearly shown.

VAT in the U.A.E.
Posted by John Lethbridge, London, United Kingdom on 17 May 2007 at 10:42 UAE time

I am planning to set up a FZC in the U.A.E. and am used to dealing with VAT but I cannot see the Indian and Arabic small business owners coping with the additional paperwork involved. Many with manual tills would have to introduce computer systems to keep track of input tax in particular. If it is a complicated as the U.K. with 'zero rated', 'exempt' and 'outside the scope of VAT' inputs, it will be a nightmare for people who have no previous experience in book keeping.

It is not just fees...
Posted by Taxed on 17 May 2007 at 09:11 UAE time

Yeah right - Can you tell me where on earth would you pay > 60% of your earnings as rent .....

7up ! for abdulkarim''sssss
Posted by shaquil, sharjah, united arab emirates on 16 May 2007 at 23:50 UAE time

Dear Brother Abdul karim , which world are you living in ???? be a part of us expats here and feel the pinch nay its " Punch"with a big "P" , its a never ending cycle as we have made the mistake of coming here and wasted the prime of our youth and sadly but its the truth that we cant even go back and settle in our own nations - most of us are misfits "now" in our own country , Only hoping against hope that the next day will bring us the long awaited rains followed by the rainbow smiles in our lives ,, you will realise this only when you are in our shoes --- God Forbid , Amin

Posted by ABDULKARIM, MANAMA, BAHRAIN on 16 May 2007 at 09:23 UAE time

I must comment again. I find it amazing that people say they are heavily taxed in the Gulf. There are no taxes here. The only taxes there are are custom duties and these are mostly at 5%. Where on earth do you get such low duties? What people pay here are fees for services like residential visas and car regiseration fees. These are not taxes. These are fees for specific serivces and they are relatively low any way. In most countries people pay between 25% - 40% of their earnings in taxes. There is nothing like that in the Gulf.

We are laready paying VAT
Posted by Wael on 16 May 2007 at 09:15 UAE time

Backing up Savio, not so long ago Dubai was the shopping destination. what I find suprising is that the prices of products now are the same as you would pay in countries were VAT is already imposed!?. Since the whole GCC is an expact community and I have the same rights as the next guy coming of the boat, with what right does the goverment have to impose taxes on me, I am not a citizen and will never be one, so on the long term what is the benefit for me? and we do not want retailers to have another excuse to hike up already hiked up prices. I am here to make money by helping build this country and not be billed for building it.

VAT
Posted by rajni sapru, dubai, uae on 16 May 2007 at 08:29 UAE time

I agree with the comments of Savio, Clive and Leo and fully support them. Expats are paying heavy fees even for a simple renewal of resident visa, which is not the case in other countries. Besides, whether you are a resident of 30 years or 1 month, you are treated alike. In which country do expats pay Sewage taxes ?

Posted by ABDULKARIM, MANAMA, BAHRAIN on 15 May 2007 at 16:40 UAE time

VAT is one of the fairest taxes around and it is time that the countries in the GCC introduce it. Many people only look at the negative aspects of taxes forgetting that governmnets can not live without it. Otherwise, how will they pay for roads, schools and prisons? We in the GCC have been lucky with the oil but let's not forget it is not ours only. It belongs to future generations too. It is time people start paying up just like the rest of the world.