UAE ready for VAT by year-end

Posted by: G. B. Ahu Sunday, 23 October 2011 10:49 AM[UAE] - Ghana. West Afriuca

"The tax, which will replace customs duties to be phased out under free trade agreements, is likely to be set at a flat rate of between 3% and 5% and would be applied to all goods and services, Al-Saleh told an Arabian Travel Market (ATM) seminar"

From experience a quote from the above ?flat rate of between 3% and 5% and would be applied to all goods and services? indicates the tax authorities need deeper insight into taxation, especially, in the sector of value added tax. Flat rate should not be more than 2% if the tax will be a domestic consumption tax. Custom duty should never be equated to value added tax but unfortunately, it is a common place.

Posted by: Fadi Kelada Monday, 19 May 2008 11:15 AM[UAE]

According to the UAE taxation law that small businesses with revenues less than AED 1 million are exempt from VAT. However according to Lynne Roberts report "small businesses with revenues under $1 million would be exempt". The information in this article need to be verified.

Posted by: Mac Thomson Friday, 9 May 2008 12:36 PM[UAE] - United Arab Emirates

Previous comments do not address the issue of account keeping, which has to be very precise if a tax is to be imputed. My experience in the region is that financial transparency - properly kept records - cannot be taken for granted. I have so often seen cash changing hands without even a receipt that I fear for the taxman's sanity! Yes, it was inspiring to me to see that here so much business could be done just on a handshake. But when taxation comes to town, innocence packs his bags.

Posted by: zozz Friday, 9 May 2008 1:57 AM[UAE] - UAE

Simple as this: there are businesses in the united states and other western countries that need to tap into developing countries markets without the headache of cusomes "which protected them in the first place for the last 200 years", so they invented a game called "free trade agreement" where they met together first, set the rules, decided that others should start buing M&Ms instead of have the time to figure out a better candy,,then invited us to sit around thier meeting tables to nod and sign or freedome away thanking them for giving us such a privilage. VAT is just the raplacement for customs as they say now, but dont forget, its not just solid goods that you pay VAT for, you pay it on SERVICES, thats right, when you get a 50Dhs haircut, you pay 2.5Dhs VAT. That haircut never had "customes" on it before. Unfortunately, we are dying to copy economical systems that are already strugling to get out of the trouble their systems created. VAT is not just the only monster coming, just read the paper with a crtical eye, and ignore the passifying coments made by comentators, the big picture shal shine clear. Be well

Posted by: Waqee Thursday, 8 May 2008 10:29 AM[UAE] - UAE

We will witness the era of 100% tax exemption coming to an end in the UAE, for most of us as Indians we preferred UAE because of taxes, if we have to pay taxes why we will not pay in our country 'The world's second largest growing Economy'. Replacing custom duty with taxes is only opening doors to structured taxation. Through this VAT system the government will build its data bank and identify tax payers, then same old taxation everywhere. I will not be surprised if tomorrow there are taxes on the income of property that we own here.